Accounting & Auditing Paper I (2001) - A

Accounting & Auditing Paper I (2001) - A

1. Books of original entry are called?

a) Ledger
b) Work sheets
c) Journal
d) None of these

2. For preparing balance sheets prepaid expenses are shown as part of?

a) Liability
b) Equities
c) Assets
d) None of these

3. Unpaid and unrecorded expenses are called?

a) Prepaid expenses
b) Accrued expenses
c) Additional expenses
d) None of these

4. Amount, cash, or other assets removed from business by owner is?

a) Capital
b) Drawings
c) Assets
d) None of these

5. Under the diminishing balance method, depreciation amount is?

a) Payment
b) Receipt
c) Expenditure
d) None of these

6. Users of accounting information include?

a) The tax authorities
b) Investors
c) Creditors
d) All of these

7. The business formin which the owneris (are) personally liable is (are) the?

a) Partnership only
b) Proprietorship
c) Corporation only
d) Corporation only
e) None of these

8. The investment of personal assets by the owner?

a) Increases total assets and increases owner’s equity
b) Increases total assets only
c) Has no effect on assets but increases owner’s equity
d) Increase assets and liabilities
e) None of these

9. All of the following are forms of organizations except?

a) Proprietorship
b) Corporation
c) Retailer
d) Partnership
e) None of these

10. Economic resources of a business that are expected to be of benefit in the future are referred to as?
a) Liabilities
b) Owner’s equity
c) Withdrawals
d) Assets

e) None of these

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