Principle of Account CXC Paper 1 Practice Questions

Results

#1. __________ is the excess of a company’s revenue over expenses for a given time period.

assets

liabilities

income

owner investment

#2. Which of these items would be accounted for as an expense?

purchase of land

repayment of a bank loan

dividends to stockholders

payment of the current periods rent

#3. Net profit + operating expenses =

gross profit

amount of sales

costs of goods sold

net sales

#4. Accounting entries involves a minimum of how many accounts?

three

two

four

five

#5. Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings?

net loss

dividens

investments by stock holders

net income

#6. A financial statement that reports a company’s assets, liabilities and shareholders’ equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure. It is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders

liability

general ledge account

balance sheet

assests

#7. Accounting is the set of concepts and techniques that are used to measure and report financial information about an economic unit

False

True

#8. Assets are usually reported on the balance sheet at which account ?

current market value

cost

expected selling price

income statement

#9. The primary private sector agency that oversees external financial reporting standards in the:

internal revenue service

general accounting office

financial accounting standards board

all of the above

#10. The private sector that currently overseas external financial reporting is the?

financial accounting standards board

revenue

liabilities

balance sheet

#11. Which of the following would not be included on a balance sheet?

accounts payable

accounts receivable

cash

sales

all of the above

#12. Some of the more common balance sheet accounts and how they are further arranged in the general ledger include all the following except?

operating expense accounts including Salaries Expense, Rent Expense, and Advertising Expense

liability accounts including Notes Payable, Accounts Payable, Accrued Expenses Payable, and Customer Deposits

asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land, and Equipment

stockholders' equity accounts such as Common Stock, Retained Earnings, Treasury Stock, and Accumulated Other Comprehensive Income

#13. Which of the following has the right to basic voting in corporation?

ordinary share-holders

preference share holder

both have equal rights

no one has the right

#14. Which of the following transaction would have no impact on stockholders equity?

investment of cash by stock holders

net loss

purchase of land from the proceeds of a bank loan

none of the above

#15. Closing balance of cash can be obtained by drawing up a _________

cash payments journal

cash book

credit account

debtor account

#16. Business entries are recorded originally in _________

SOFP

SOCI

trial balance

general journal

#17. Which of the following equations properly represents a derivation of the fundamental accounting equation?

assets+liabilities=owners equity

assets-liabilities=owners equity

cash=assets

assets=owner's equity

#18. Money owed to customers is ______________

capital

a liability

income

an asset

Finish

Helpful Test

Principle of Account CXC Paper 1 Practice Questions

Results

#1. __________ is the excess of a company’s revenue over expenses for a given time period.

#2. Which of these items would be accounted for as an expense?

#3. Net profit + operating expenses =

#4. Accounting entries involves a minimum of how many accounts?

#5. Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings?

#7. Accounting is the set of concepts and techniques that are used to measure and report financial information about an economic unit

#8. Assets are usually reported on the balance sheet at which account ?

#9. The primary private sector agency that oversees external financial reporting standards in the:

#10. The private sector that currently overseas external financial reporting is the?

#11. Which of the following would not be included on a balance sheet?

#12. Some of the more common balance sheet accounts and how they are further arranged in the general ledger include all the following except?

#13. Which of the following has the right to basic voting in corporation?

#14. Which of the following transaction would have no impact on stockholders equity?

#15. Closing balance of cash can be obtained by drawing up a _________

#16. Business entries are recorded originally in _________

#17. Which of the following equations properly represents a derivation of the fundamental accounting equation?

#18. Money owed to customers is ______________

Helpful Test Copyright @ 2022

Principle of Account CXC Paper 1 Practice Questions

Results

#1. __________ is the excess of a company’s revenue over expenses for a given time period.

#2. Which of these items would be accounted for as an expense?

#3. Net profit + operating expenses =

#4. Accounting entries involves a minimum of how many accounts?

#5. Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings?

#7. Accounting is the set of concepts and techniques that are used to measure and report financial information about an economic unit

#8. Assets are usually reported on the balance sheet at which account ?

#9. The primary private sector agency that oversees external financial reporting standards in the:

#10. The private sector that currently overseas external financial reporting is the?

#11. Which of the following would not be included on a balance sheet?

#12. Some of the more common balance sheet accounts and how they are further arranged in the general ledger include all the following except?

#13. Which of the following has the right to basic voting in corporation?

#14. Which of the following transaction would have no impact on stockholders equity?

#15. Closing balance of cash can be obtained by drawing up a _________

#16. Business entries are recorded originally in _________

#17. Which of the following equations properly represents a derivation of the fundamental accounting equation?

#18. Money owed to customers is ______________

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