Principles of Accounting - Introduction ('O' Levels) Online Test

I have just paid $12,000 in cash for the entire year's rental. 3 months have passed. How much rental expense have I incurred so far? What accounts should be involved?


Mr Chen's sales team just made a cash sale for the week which was worth $2,000. During that week, no other expenses were incurred. Mr Chen's company policy is to pay his salesmans' salary in cash on a monthly basis. Under the accrual accounting and cash accounting, his profit for the week is _______ & ________ respectively?


The Accounting Principle "Going Concern" suggests that all businesses are expected to _________?


Mr. Wong has been in the business of buying and selling of furnitures for the past 20 years. Recently, his delivery van has broken down and so he sought to buy a new one. In the month of February there were only two transactions. He paid $20,000 for a new delivery van with cash. In addition, he also purchased $40,000 worth of furnitures on credit in anticipation of a huge demand for his furnitures. Which of the following accounts should be debited/credited? The options given are not necessarily paired up in accordance to their transaction. | (i) Credit Delivery Van $20,000, Credit Fixtures & Furnitures $40,000 | (ii) Debit Delivery Van $20,000, Credit Cash $20,000 | (iii) Debit Fixtures & Furnitures $40,000, Credit Accounts Payable $40,000 | (iv) Debit Purchases $40,000, Credit Cash $40,000 | (v) Debit Purchases $40,000, Debit Delivery Van $20,000


Which of the following variations will cause the Accounting Equation to be correct? | (i) Assets +$5,000, Liabilities -$15,000, Owner's Equity -$20,000 | (ii) Assets -$6,000, Liabilities -$4,000, Owner's Equity -$2,000 | (iii) Liabilities -$4,000, Owner's Equity +$4,000 | (iv) Assets +$8,000, Owner's Equity -$8,000, Liabilities -$8,000


Which of the following are true? (i) Book-keeping is not a systematic recording in the books of accounts of business transactions of a company up to the preparation of Trial Balance | (ii) Accounting is the process of book-keeping and reporting in final accounts together with intepretation of the affairs of the business | (iii) Book-keeping is equivalent to accounting | (iv) Two of the common book-keeping system used by businesses are Single-entry and Double-entry book-keeping systems.








Description:

This homework is designed for basic Principles of Accounting targeted at 'O' Level students. Students may be allowed to use a calculator is some of the questions.

Tags:

Accounting

Discussion

Pamela

Tumisang Moshe, a sole trader, extracted the following trial balance from his books at the
close of business on 31 July 2018.
Debit Credit
Purchases
Sales
Capital
Bank
Cash
Discount allowed
Returns Inwards
Returns outwards
Carriage inwards
Rent
Provision for doubtful debts
Office furnitureSee more

845 days 22 hours 22 minutes ago

Eugene Ong
Interested in finance, accounting and operations management
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