Sample Questions for Foundation Course (Accounts for Managers)
Sample Questions for Foundation Course (Accounts for Managers)
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1. Decision makers need information. Which of the following groups rely on accounting information for decision making? 1. managers 2. investors 3. creditors 4. all of the above
2. Which type of business organization is a separate legal entity whose owners are not personally liable for the debts of the business? 1. [pic]proprietorship 2. partnership 3. corporation 4. all of the above
3. An automobile has a list price of Rs.4,00,000. The company representative is a good negotiator and only pays Rs. 380000 for the automobile. Which accounting concept/principle requires the automobile be recorded at Rs. 380000 in the accounting records of the business? 1. entity concept 2. cost principle 3. going-concern concept 4. stable-monetary-unit concept
4. If total liabilities is Rs.150,000 and owner's equity totals Rs.50,000, then assets must total --------------- 1. Rs.50,000 2. Rs.100,000 3. Rs.150,000 4. Rs.200,000
5. The financial statement that reports assets, liabilities and owners' equity is the -------- 1. income statement 2. statement of owner's equity 3. balance sheet 4. statement of cash flows
6. Events are recorded by a business if assets, liabilities, or owner's equity are affected. Select the event(s) that should be recorded in the business records from those listed below. 1. Customer purchases merchandise and pays cash. 2. Customer purchases merchandise on account. 3. Company hires an employee who starts next month. 4. Both (1) and (2)
7. Select the transaction(s) that result(s) in increasing total assets for Company ABC. 1. Company ABC purchases office equipment on account. 2. Company ABC pays rent expense with cash. 3. Company ABC purchases land for cash. 4. Both (1) and (3) increase total assets.
8. Select the transaction(s) that result(s) in
Top of Form
1. Decision makers need information. Which of the following groups rely on accounting information for decision making? 1. managers 2. investors 3. creditors 4. all of the above
2. Which type of business organization is a separate legal entity whose owners are not personally liable for the debts of the business? 1. [pic]proprietorship 2. partnership 3. corporation 4. all of the above
3. An automobile has a list price of Rs.4,00,000. The company representative is a good negotiator and only pays Rs. 380000 for the automobile. Which accounting concept/principle requires the automobile be recorded at Rs. 380000 in the accounting records of the business? 1. entity concept 2. cost principle 3. going-concern concept 4. stable-monetary-unit concept
4. If total liabilities is Rs.150,000 and owner's equity totals Rs.50,000, then assets must total --------------- 1. Rs.50,000 2. Rs.100,000 3. Rs.150,000 4. Rs.200,000
5. The financial statement that reports assets, liabilities and owners' equity is the -------- 1. income statement 2. statement of owner's equity 3. balance sheet 4. statement of cash flows
6. Events are recorded by a business if assets, liabilities, or owner's equity are affected. Select the event(s) that should be recorded in the business records from those listed below. 1. Customer purchases merchandise and pays cash. 2. Customer purchases merchandise on account. 3. Company hires an employee who starts next month. 4. Both (1) and (2)
7. Select the transaction(s) that result(s) in increasing total assets for Company ABC. 1. Company ABC purchases office equipment on account. 2. Company ABC pays rent expense with cash. 3. Company ABC purchases land for cash. 4. Both (1) and (3) increase total assets.
8. Select the transaction(s) that result(s) in