Principle of Account CXC Paper 1 Practice Questions

Results

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

True

False

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

credit account

debtor account

cash payments journal

cash book

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

assets

income

owner investment

liabilities

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

dividens

investments by stock holders

net income

net loss

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

net loss

investment of cash by stock holders

purchase of land from the proceeds of a bank loan

none of the above

#6. Money owed to customers is ______________

income

a liability

capital

an asset

#7. Net profit + operating expenses =

net sales

amount of sales

costs of goods sold

gross profit

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

repayment of a bank loan

dividends to stockholders

payment of the current periods rent

purchase of land

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

cash

all of the above

accounts receivable

sales

accounts payable

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

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

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

#11. Business entries are recorded originally in _________

SOFP

general journal

trial balance

SOCI

#12. 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

assests

general ledge account

liability

balance sheet

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

assets+liabilities=owners equity

cash=assets

assets-liabilities=owners equity

assets=owner's equity

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

expected selling price

income statement

cost

current market value

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

financial accounting standards board

general accounting office

internal revenue service

all of the above

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

four

two

five

three

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

ordinary share-holders

no one has the right

preference share holder

both have equal rights

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

liabilities

financial accounting standards board

revenue

balance sheet

Finish

Helpful Test

Principle of Account CXC Paper 1 Practice Questions

Results

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

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

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

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

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

#6. Money owed to customers is ______________

#7. Net profit + operating expenses =

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

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

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

#11. Business entries are recorded originally in _________

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

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

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

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

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

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

Helpful Test Copyright @ 2022

Principle of Account CXC Paper 1 Practice Questions

Results

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

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

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

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

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

#6. Money owed to customers is ______________

#7. Net profit + operating expenses =

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

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

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

#11. Business entries are recorded originally in _________

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

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

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

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

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

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

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