Question 1

Which of the following is a liability?

Accepted Answer

Loan from J. Henry

Answer

Buildings

Answer

Equipment

Answer

Accounts receivable

Question 2

Which of the following is not an asset?

Accepted Answer

Accounts payable

Answer

Premises

Answer

Cash at bank

Answer

Inventory

Question 3

Which of the following statements is incorrect?

Accepted Answer

Assets + Capital = Liabilities

Answer

Capital = Assets – Liabilities

Answer

Liabilities = Assets – Capital

Answer

Liabilities + Capital = Assets

Question 4

The main purpose of accounting is:

Accepted Answer

to provide management with information for making sound financial decisions

Answer

to determine at what price the business can sell goods to make a profit

Answer

to see if there is an increase in the firm’s capital from the last financial year.

Answer

to record the profit a business makes

Question 5

Employees would be interested in the firm’s financial records MAINLY because:

Accepted Answer

to determine if their employment with the firm is secure

Answer

it is legally their right to know in order to negotiate employee discounts

Answer

they want to work for the firm’s competitor

Answer

to see how much money their supervisors are being paid, in case they want a promotion.

Question 6

Which of the following is a prerequisite to becoming a CPA (certified public accountant)?

Accepted Answer

A bachelor’s degree in Accounting.

Answer

Work experience in an accounting firm for at least 5 years

Answer

A high school pass and 5 years’ work experience in accounting

Answer

A high-school pass in accounting

Question 7

Fraud, identity theft and leaking of information are MAINLY violations of:

Accepted Answer

professionalism

Answer

principles

Answer

legality

Answer

ethics

Question 8

Which of the following is the correct order of the accounting cycle?

Accepted Answer

Source documents, journal entries, ledgers, trial balance and financial statements

Answer

Source documents, ledgers, trial balance, balance sheet and income statement

Answer

Source documents, journal entries, ledgers and financial statements

Answer

Source documents, journal entries, trial balance, balance sheet and income statement

Question 9

Bookkeeping is best described as:

Accepted Answer

The recording of financial information in a systematic way

Answer

Recording information in a formal document

Answer

None of the above

Answer

Keeping track of financial records

Question 10

The process of recording, classifying and summarizing all business transactions in order to know the financial result is called.

Accepted Answer

Accounting

Answer

Journalizing

Answer

Book – keeping

Answer

None of these

Question 11

All the following are internal users of accounting information EXCEPT.

Accepted Answer

The bank

Answer

Employees

Answer

The owner

Answer

The Manager

Question 12

All the following are duties of the accountant EXCEPT

Accepted Answer

Storing reports

Answer

Preparing and reviewing budgets

Answer

Preparing tax assessments

Answer

Analyzing financial statements

Question 13

All the following are examples of areas in which accountants can specialize EXCEPT.

Accepted Answer

Data Processing Accountant

Answer

Management Accountant

Answer

Financial Accountant

Answer

Forensic Accountant.

Question 14

Many people enter their initial job without any qualifications and start their career with on-the job training while studying for further qualifications.

All the following are job opportunities that would be available to them EXCEPT.

Accepted Answer

Auditor

Answer

Bookkeeper

Answer

Bank clerk

Answer

Accounts clerk

Question 15

All the following are qualities of a bookkeeper except.

Accepted Answer

Care

Answer

Confidentiality

Answer

Integrity

Answer

Honesty

Question 16

In the modern world, ALL the following are skills required except.

Accepted Answer

Excellent handwriting

Answer

Expertise in accounting techniques

Answer

Expertise in accounting skills

Answer

Expertise in IT

Question 17

Which of the following is NOT an ethical principle of accounting?

Accepted Answer

Consistency

Answer

Confidentiality

Answer

Objectivity

Answer

Due care

Question 18

Which of the following would you expect to be included in the duties of a bookkeeper?

Accepted Answer

Preparing a cash book

Answer

analyzing financial statements

Answer

Make tax assessments

Answer

Preparing budgets

Question 19

Which of the following would you expect to be included in the duties of an accountant?I. Developing financial systems II. Preparing trial balancesIII. Working with auditors

Accepted Answer

II and III only

Answer

I and 11 only

Answer

I, II and III

Answer

I and III only

Question 20

Which of the following can result from inappropriate application of ethical principles?
I.                    Fines
II.                 Job loss
III.              Imprisonment

Accepted Answer

I, II and III

Answer

I and III only

Answer

I and II only

Answer

II and III only

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