A-AS Level (CIE) Accounting Paper-1: Specimen Questions with Answers 12 - 13 of 93

Doorsteptutor material for Bank-PO is prepared by world's top subject experts: get questions, notes, tests, video lectures and more- for all subjects of Bank-PO.

Question 12

Question

MCQ▾

The qualitative aspect of the business is not recorded in the books of accounts according to the basic concept of

Choices

Choice (4)

a.

Business Entity

b.

Going Concern

c.

Accounting period

d.

Money Measurement

Answer

d.

Explanation

Transactions and events are recorded in accounting books which can be expressed in monetary terms. An event, even though it may be particularly important for the business, will not be recorded in the books of the business unless its effect can be measured in terms of money with a degree of accuracy. For example, accounting does not record a quarrel between the production manager and sales manager; it does not report that a strike is beginning, and it does not reveal that a competitor has produces and marketed a better product in the market. These events cannot be expressed in monetary terms and thus are not recorded in the books. Money is the measurement which allows events of various nature to be added up together.

Question 13

Question

MCQ▾

What shall be the amount of Capital if Cash is $ 5,000; Furniture $ 12,000: Stock $ 30,000 and Creditors $ 6,000.

Choices

Choice (4)

a.

$ 41,000

b.

$ 53,000

c.

$ 47,000

d.

None of the above

Answer

a.

Explanation

The Amount of Capital if Cash
Assets-

Add: Cash

Furniture

Stock

Liabilities-

Less: Creditors

Capital

$ 5000

12,000

30000

47,000

6000

$ 41,000

Developed by: