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- 1. Multiple Choice
Assets which are easily convertible into cash within a year is called :
Current Assets
Long term assets
Plant Assets
Current Assets
- 2. Multiple Choice
Accrued Expense is considered as:
Asset
Revenue
Expense
Liability
- 3. Multiple Choice
The process of allocating the cost of a plant asset to expense in the accounting periods benefiting from its years is called:
consumption
Depreciation
Amortization
Utilization
- 4. Multiple Choice
On January 1, 2020 Ahmed company acquired a truck at a cost of BD 24000.The truck expected to have a salvage value of BD 2000 and a useful life of 4 years. Then, the accumulated depreciation for the second year using the straight line method is :
BD 4000
BD 5500
BD 6000
BD 11000
- 5. Multiple Choice
Land is classified as :
Liquid asset
Short term asset
Long term asset
Soft asset
- 6. Multiple Choice
Depreciation should be recorded in :
Income statement
Owners Equity Statement
Balance sheet
Cash flow Statement
- 7. Multiple Choice
Which of the following has a credit balance?
Machine
Prepaid expense
Unearned Revenue
withdrawals
- 8. Multiple Choice
Which of the following has a debit balance?
Unearned Revenue
Prepaid expense
Account payable
Consulting Revenue
- 9. Multiple Choice
The contra account for account receivable is :
Accumulated depreciation
Allowance for doubtful account
Unearned Revenue
Cash
- 10. Multiple Choice
What is true about trial balance ?
It is a financial statement
A list of opening balances of ledger accounts
The two sides ( debit and credit ) should be equal
It is the last step in the preparation of financial statement
- 11. Multiple Choice
Shows a company’s revenues less their costs and expenses ?
Owners equity statement
Trial Balance
Balance Sheet
Income Statement
- 12. Multiple Choice
Summarizes company's assets, liabilities and owners equity ?
Owners equity statement
Trial Balance
Balance Sheet
Income Statement
- 13. Multiple Choice
Stocks should be recorded in the :
Owners equity statement
Cashflow statement
Balance Sheet
Income Statement
- 14. Multiple Choice
Prepaid Expenses should be recorded in :
Owners equity statement
Cash flow statement
Balance Sheet
Income Statement
- 15. Multiple Choice
commision income should be recorded in :
Owners equity statement
Cashflow statement
Balance Sheet
Income Statement
- 16. Multiple Choice
Fees earned should be recorded in :
Balance sheet
Cashflow statement
Income statement
Owners Equity Statement
- 17. Multiple Choice
Accumulated depreciation should be recorded in :
Owners equity statement
Cashflow statement
Balance Sheet
Income Statement
- 18. Multiple Choice
Short term investments is classified as :
Current Assets
Long term assets
Plant Assets
Current Assets
- 19. Multiple Choice
On January 1, 2020 Ahmed company acquired a machine at a cost of BD 17600.The machine expected to have a salvage value of BD 3000 and a useful life of 5 years. The company paid BD 400 as transportation charges. Then, the depreciable base using the straight line method is :
BD 18000
BD 14600
BD 15000
BD 14200
- 20. Multiple Choice
The difference between the value of asset and accumulated depreciation is called :
Net Account receivable
Net Book Value
Net Sales
Net income
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