Accounting Concepts and Principles

Which of the following options describes the process of organizing and classifying financial records into a structured format for analysis?

What are the primary functions of a bookkeeper?

Which of the following sets of accounts are NOT grouped based on their common classifications in accounting?

Which of the following statements BEST describes the fundamental principle of double-entry bookkeeping?

Which of the following represents the correct order of the stages in the accounting cycle?

Which of the following situations is NOT considered an accounting transaction?

Which of the following accounts are categorized as nominal accounts?

Which of the following accounts would NOT be classified as a real account?

When a customer returns goods, where should the credit note be initially recorded?

A debit balance of $100 in the cash account signifies what?

Which of the following statements regarding ledger accounts is TRUE?

How does purchasing equipment on credit affect a company's balance sheet?

A standing order for insurance of $25 appears in the debit column of the bank statement but not in the cash book. How is this adjusted in the cash book?

Micheal Chin decides to bring the equipment into the business but does not include the value of the motorcycle when calculating the total fixed assets value. Which accounting concept is this most consistent with?

M. Garvey and Sons creates a provision for doubtful debts, this implies their decision to use the concept of

Why would it be inaccurate to say that D & K's decision to include the $4000 in the Trading and Profit & Loss Account breached the separate entity concept?

When insurance expenses are not paid for by the end of the accounting period, they are still added to the Profit and Loss Account of the Balance Sheet as a liability. What accounting concept is employed here?

If Ram Samaru received a 10% cash discount on goods valued at $500 which he paid for within the grace period. How much did he pay for the goods after receiving the discount?

Which of the following expressions accurately represents the Balance Sheet Equation?

Why are a company's premises considered a fixed asset

If a company's total assets are $5200 and its total liabilities are $720, what is its owner's equity?

Which of the following categories exclusively contains current assets?

Which of the following best describes the accounting concept applied when a business records revenue for a sale made on credit, even though cash has not yet been received?

What is the primary reason for preparing a trial balance?

Which of the following statements best describes the concept of going concern?

The 'matching' concept is best demonstrated by

Which accounting concept ensures that the business is treated as a separate entity from its owner?

If an accountant is exercising prudence in recording business transactions, what principle is she likely applying?

What is the total value of current assets in the given list?: vehicles, equipment, machinery, computer; accounts receivables, inventory, accounts payable, cash at bank; bank overdraft, machinery, debtors, stocks; Inventory, cash at bank, accounts receivables, cash in hand

If the working capital of a business is $15,500 and the current assets are $16,500, what is the total value of current liabilities?

Mr. Smith starts a business with $10,000 in his bank account. He uses his vehicle ($6,000) and building ($15,000) for the business. Customers owe him $4,000. He withdraws $1,500 for personal use and owes creditors $2,000. What is the closing capital of the business?

Which statement correctly describes the relationship between drawings and capital?

What is the main purpose of a balance sheet?

Which accounting document reveals the net earnings of a business?

What does gross profit represent?

How is the cost of goods sold calculated?

A company purchased stationery for $220 and used $120 worth of it. How much stationery should appear in the balance sheet?

To which account is the 'Discounts Received' Account transferred?

What is the best use of a cash book?

A retailer purchases goods worth $3,000. He receives a 30% trade discount and a 5% cash discount. How much does he pay?

What is the term used for transferring money from cash to a bank account?

When the cash book balance differs from the bank statement balance, what document is prepared to reconcile them?

When preparing a bank reconciliation statement, how should cheques issued but not yet presented by the recipient be treated?

Which of the following scenarios would cause the cash book balance to disagree with the bank statement?

What is the balance per bank statement based on the given information:

What is the main purpose of a petty cash book?

Which of the following expenses should be recorded in the petty cash book?

If a business has a desired petty cash float of $200 and $146 is spent during the period, how much will be reimbursed at the end of the period?

What does it mean to “post” an item in accounting?

Which of the following is a book of original entry AND part of the general ledger?

What journal entry is required in the books of R. Scott who started a business by depositing $10,000 into the business' bank account?