Multiple CHOICE l Mple Choices (40 points, 2 points each) 12 13 14 15 16 7 189 2
ID: 341222 • Letter: M
Question
Multiple CHOICE
l Mple Choices (40 points, 2 points each) 12 13 14 15 16 7 189 20 No. Answer No. Answer 21 22 23 24 25 26 27 28 29 30 11. The record in which transactions are first recorded is the: A. Account balance. B. Ledger. C. Journal. D. Trial balance. 12. An accountant has debited an account for $3,500 and credited a liability account for 2,000. Which of the following would be an incorrect way to complete the recording of this transaction: A. Credit another asset account for $1,500. B. Credit another liability account for $1,500. C. Credit an expense account for $1,500. D. Credit the owner's capital account for $1,500. E. Debit another asset account for $1,500. 13. To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the: A. Objectivity principle B. Monetary unit assumption. C. Business entity assumption. D. Going-concern assumption. E. Revenue recognition principle 14. The area of accounting aimed at serving the decision making needs of internal users is: A. Financial accounting. B. Managerial accounting. C. External auditing. D. SEC reporting. E. Bookkeeping. 2.Explanation / Answer
Answer to 11 is C
Transaction is first recorded in Journal, then leger, account balance and lastly on trial balance.
Answer to 12 is E,
According to accounting rules if debit should be equals to credit, Debit is 3500, therefore credit should be 3500 which would become possible through entry provided in option E.
Answer to 13 is C
According to Business Entity Assumption, Business has separate legal entity from its owner therefore if we put personal expenditure in books, it will violate this principal.
Answer to 14 is B
Area of accounting which serves the decision making needs of the internal users is Managerial accouting.
Because through this approach managers take decisions on the basis of financial statements.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.