Principle of Account CXC Paper 1 Practice Questions

Results

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

both have equal rights

ordinary share-holders

no one has the right

preference share holder

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

two

four

five

three

#3. 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

balance sheet

assests

general ledge account

#4. 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

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

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

#5. Business entries are recorded originally in _________

trial balance

general journal

SOFP

SOCI

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

net income

investments by stock holders

dividens

net loss

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

True

False

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

assets=owner's equity

assets-liabilities=owners equity

cash=assets

assets+liabilities=owners equity

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

expected selling price

income statement

cost

current market value

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

income

assets

owner investment

liabilities

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

repayment of a bank loan

purchase of land

dividends to stockholders

payment of the current periods rent

#12. Net profit + operating expenses =

net sales

gross profit

costs of goods sold

amount of sales

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

cash

all of the above

sales

accounts payable

accounts receivable

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

balance sheet

financial accounting standards board

liabilities

revenue

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

financial accounting standards board

all of the above

internal revenue service

general accounting office

#16. Money owed to customers is ______________

an asset

income

a liability

capital

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

credit account

cash book

debtor account

cash payments journal

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

net loss

purchase of land from the proceeds of a bank loan

investment of cash by stock holders

none of the above

Finish

Helpful Test

Principle of Account CXC Paper 1 Practice Questions

Results

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

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

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

#5. Business entries are recorded originally in _________

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

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

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

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

#12. Net profit + operating expenses =

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

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

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

#16. Money owed to customers is ______________

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

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

Helpful Test Copyright @ 2022

Principle of Account CXC Paper 1 Practice Questions

Results

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

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

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

#5. Business entries are recorded originally in _________

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

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

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

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

#12. Net profit + operating expenses =

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

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

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

#16. Money owed to customers is ______________

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

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

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