Principle of Account CXC Paper 1 Practice Questions

Results

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

none of the above

investment of cash by stock holders

purchase of land from the proceeds of a bank loan

net loss

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

expected selling price

cost

current market value

income statement

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

cash

accounts payable

accounts receivable

all of the above

sales

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

four

two

five

three

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

debtor account

cash book

credit account

cash payments journal

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

owner investment

assets

liabilities

income

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

dividends to stockholders

payment of the current periods rent

repayment of a bank loan

purchase of land

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

ordinary share-holders

no one has the right

both have equal rights

preference share holder

#9. Net profit + operating expenses =

net sales

gross profit

costs of goods sold

amount of sales

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

general accounting office

all of the above

internal revenue service

financial accounting standards board

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

revenue

financial accounting standards board

balance sheet

liabilities

#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

general ledge account

balance sheet

liability

assests

#13. Money owed to customers is ______________

a liability

an asset

income

capital

#14. Business entries are recorded originally in _________

general journal

SOCI

SOFP

trial balance

#15. 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

#16. 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

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

False

True

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

assets+liabilities=owners equity

assets-liabilities=owners equity

assets=owner's equity

cash=assets

Finish

Helpful Test

Principle of Account CXC Paper 1 Practice Questions

Results

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

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

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

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

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

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

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

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

#9. Net profit + operating expenses =

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

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

#13. Money owed to customers is ______________

#14. Business entries are recorded originally in _________

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

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

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

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

Helpful Test Copyright @ 2022

Principle of Account CXC Paper 1 Practice Questions

Results

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

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

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

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

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

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

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

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

#9. Net profit + operating expenses =

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

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

#13. Money owed to customers is ______________

#14. Business entries are recorded originally in _________

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

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

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

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

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