Principle of Account CXC Paper 1 Practice Questions


        
                    

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#1. The primary private sector agency that oversees external financial reporting standards in the: 
        
            
                
                    
                    general accounting office
                
                general accounting office            
        
        
            
                
                    
                    internal revenue service
                
                internal revenue service            
        
        
            
                
                    
                    financial accounting standards board
                
                financial accounting standards board            
        
        
            
                
                    
                    all of the above
                
                all of the above            
        
#2. Which of the following has the right to basic voting in corporation? 
        
            
                
                    
                    ordinary share-holders
                
                ordinary share-holders            
        
        
            
                
                    
                    preference share holder
                
                preference share holder            
        
        
            
                
                    
                    no one has the right
                
                no one has the right            
        
        
            
                
                    
                    both have equal rights
                
                both have equal rights            
        
#3. Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings? 
        
            
                
                    
                    net income
                
                net income            
        
        
            
                
                    
                    dividens
                
                dividens            
        
        
            
                
                    
                    net loss
                
                net loss            
        
        
            
                
                    
                    investments by stock holders
                
                investments by stock holders            
        
#4. Accounting is the set of concepts and techniques that are used to measure and report financial information about an economic unit 
        
            
                
                    
                    False
                
                False            
        
        
            
                
                    
                    True
                
                True            
        
#5. Which of the following would not be included on a balance sheet? 
        
            
                
                    
                    all of the above
                
                all of the above            
        
        
            
                
                    
                    sales
                
                sales            
        
        
            
                
                    
                    accounts receivable
                
                accounts receivable            
        
        
            
                
                    
                    cash
                
                cash            
        
        
            
                
                    
                    accounts payable
                
                accounts payable            
        
#6. __________ is the excess of a company’s revenue over expenses for a given time period. 
        
            
                
                    
                    income
                
                income            
        
        
            
                
                    
                    liabilities
                
                liabilities            
        
        
            
                
                    
                    owner investment
                
                owner investment            
        
        
            
                
                    
                    assets
                
                assets            
        
#7. Net profit + operating expenses = 
        
            
                
                    
                    gross profit
                
                gross profit            
        
        
            
                
                    
                    net sales
                
                net sales            
        
        
            
                
                    
                    costs of goods sold
                
                costs of goods sold            
        
        
            
                
                    
                    amount of sales
                
                amount of sales            
        
#8. 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 
        
            
                
                    
                    general ledge account
                
                general ledge account            
        
        
            
                
                    
                    balance sheet
                
                balance sheet            
        
        
            
                
                    
                    assests
                
                assests            
        
        
            
                
                    
                    liability
                
                liability            
        
#9. Assets are usually reported on the balance sheet at which account ? 
        
            
                
                    
                    current market value
                
                current market value            
        
        
            
                
                    
                    expected selling price
                
                expected selling price            
        
        
            
                
                    
                    income statement
                
                income statement            
        
        
            
                
                    
                    cost
                
                cost            
        
#10. Accounting entries involves a minimum of how many accounts? 
        
            
                
                    
                    five
                
                five            
        
        
            
                
                    
                     three
                
                 three            
        
        
            
                
                    
                    four
                
                four            
        
        
            
                
                    
                    two
                
                two            
        
#11. Money owed to customers is ______________ 
        
            
                
                    
                    capital
                
                capital            
        
        
            
                
                    
                    income
                
                income            
        
        
            
                
                    
                    an asset
                
                an asset            
        
        
            
                
                    
                    a liability
                
                a liability            
        
#12. The private sector that currently overseas external financial reporting is the? 
        
            
                
                    
                    liabilities
                
                liabilities            
        
        
            
                
                    
                    financial accounting standards board
                
                financial accounting standards board            
        
        
            
                
                    
                    balance sheet
                
                balance sheet            
        
        
            
                
                    
                    revenue
                
                revenue            
        
#13. Which of the following transaction would have no impact on stockholders equity? 
        
            
                
                    
                    none of the above
                
                none of the above            
        
        
            
                
                    
                    purchase of land from the proceeds of a bank loan
                
                purchase of land from the proceeds of a bank loan            
        
        
            
                
                    
                    investment of cash by stock holders
                
                investment of cash by stock holders            
        
        
            
                
                    
                    net loss
                
                net loss            
        
#14. Which of the following equations properly represents a derivation of the fundamental accounting equation? 
        
            
                
                    
                    assets-liabilities=owners equity
                
                assets-liabilities=owners equity            
        
        
            
                
                    
                    assets+liabilities=owners equity
                
                assets+liabilities=owners equity            
        
        
            
                
                    
                    assets=owner's equity
                
                assets=owner's equity            
        
        
            
                
                    
                    cash=assets
                
                cash=assets            
        
#15. Which of these items would be accounted for as an expense? 
        
            
                
                    
                    payment of the current periods rent
                
                payment of the current periods rent            
        
        
            
                
                    
                    purchase of land
                
                purchase of land            
        
        
            
                
                    
                    repayment  of a bank loan
                
                repayment  of a bank loan            
        
        
            
                
                    
                    dividends to stockholders
                
                dividends to stockholders            
        
#16. Closing balance of cash can be obtained by drawing up a _________ 
        
            
                
                    
                    credit account
                
                credit account            
        
        
            
                
                    
                    cash book
                
                cash book            
        
        
            
                
                    
                    debtor account
                
                debtor account            
        
        
            
                
                    
                    cash payments journal
                
                cash payments journal            
        
#17. 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
                
                operating expense accounts including Salaries Expense, Rent Expense, and Advertising Expense            
        
        
            
                
                    
                    asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land, and Equipment
                
                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
                
                liability accounts including Notes Payable, Accounts Payable, Accrued Expenses Payable, and Customer Deposits            
        
        
            
                
                    
                    stockholders' equity accounts such as Common Stock, Retained Earnings, Treasury Stock, and Accumulated Other Comprehensive Income
                
                stockholders' equity accounts such as Common Stock, Retained Earnings, Treasury Stock, and Accumulated Other Comprehensive Income            
        
#18. Business entries are recorded originally in _________ 
        
            
                
                    
                    trial balance
                
                trial balance            
        
        
            
                
                    
                    SOCI
                
                SOCI            
        
        
            
                
                    
                    SOFP
                
                SOFP            
        
        
            
                
                    
                    general journal
                
                general journal            
        
Finish

Helpful Test

Principle of Account CXC Paper 1 Practice Questions

Results

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

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

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

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

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

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

#7. Net profit + operating expenses =

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

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

#11. Money owed to customers is ______________

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

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

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

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

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

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

#18. Business entries are recorded originally in _________

Helpful Test Copyright @ 2022

Principle of Account CXC Paper 1 Practice Questions

Results

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

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

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

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

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

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

#7. Net profit + operating expenses =

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

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

#11. Money owed to customers is ______________

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

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

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

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

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

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

#18. Business entries are recorded originally in _________

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