Principle of Account CXC Paper 1 Practice Questions

Results

#1. 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

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

assets-liabilities=owners equity

assets=owner's equity

cash=assets

assets+liabilities=owners equity

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

debtor account

cash payments journal

cash book

credit account

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

True

False

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

financial accounting standards board

general accounting office

all of the above

internal revenue service

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

income statement

current market value

cost

expected selling price

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

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

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

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

four

two

three

five

#9. Business entries are recorded originally in _________

trial balance

general journal

SOFP

SOCI

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

accounts receivable

all of the above

sales

cash

accounts payable

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

purchase of land from the proceeds of a bank loan

none of the above

net loss

investment of cash by stock holders

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

income

liabilities

assets

owner investment

#13. Money owed to customers is ______________

income

an asset

a liability

capital

#14. Net profit + operating expenses =

amount of sales

gross profit

costs of goods sold

net sales

#15. 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

balance sheet

assests

liability

general ledge account

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

financial accounting standards board

revenue

liabilities

balance sheet

#17. 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 loss

dividens

investments by stock holders

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

ordinary share-holders

both have equal rights

preference share holder

no one has the right

Finish

Helpful Test

Principle of Account CXC Paper 1 Practice Questions

Results

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

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

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

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

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

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

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

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

#9. Business entries are recorded originally in _________

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

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

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

#13. Money owed to customers is ______________

#14. Net profit + operating expenses =

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

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

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

Helpful Test Copyright @ 2022

Principle of Account CXC Paper 1 Practice Questions

Results

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

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

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

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

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

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

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

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

#9. Business entries are recorded originally in _________

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

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

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

#13. Money owed to customers is ______________

#14. Net profit + operating expenses =

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

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

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

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