Capital Account and System Entry MCQs

1. Single entry system of accounting:
(a) Dual aspects of a transaction is recorded
(b) Single aspect of a transaction is recorded
(c) Important transactions are recorded
(d) All of them
Single aspect of a transaction is recorded
2. Statement of financial position produced from incomplete accounting record is commonly known as:
(a) Balance sheet
(b) Cash flow statement
(c) Statement of affairs
(d) Statement operations of financial
Statement of affairs
3. Which of the following businesses usually maintain incomplete accounting record of the business activities?
(a) Large businesses
(b) Companies
(c) Big partnership firms (d) Small businesses
Small businesses
4 The accrual basis of accounting reflects a true and fair view of an entity and is considered to produce more accurate accounting records.
(a) Single entry system
(b) Double entry system
(c) Cash based system
(d) Credit base system
Double entry system
5. Identify the correct formula used to ascertain the closing balance of capital:
(a) Opening capital + net income Drawing Assets Closing capital
(b) Closing capital Opening Capital + Net loss-Drawings
(c) Closing Capital Opening capital Assets + Incomes – Expenses
(d) Closing capital – Opening capital Net income-
Closing capital – Opening capital Net income-
6. Which of the following formulas Drawing used to calculated the net income for an account Dg period?
(a) Net income opening capital Drawings + Ending capital
(b) Net income Opening capital +Drawings – Ending capital
(c) Net income Opening capital + Drawings + Ending capital
(d) Net income = Opening capital Total assets
Net income Opening capital + Drawings + Ending capital
7. The net income for the period is $1,000, calculated as the difference between closing capital ($52,000) and opening capital ($51,000) with no drawings.
(a) $1000 net income
(b) $1000 net loss
(c) $2000 net income
(d) $2000 net loss
$1000 net income
8. Total opening balances of assets and liabilities are $10,000 and $5000 respectively. Find out the opening capital of the business:
(a) $10,000
(c) $15000
(b) $5000
(d) $50,000,000
$5000
9. Which one of the following accounts is supposed to be used to get the figure of credit purchases made during the current accounting period?
(a) Debtor account
(b) Revenue account
(c) Creditors account
(d) Expenses account
Creditors account
10. To obtain the amount of credit sales made during an accounting period, which account is generally used in single entry and incomplete records?
(a) A/c payable account
(b) Total revenue account
(c) Debtors account
(d) Stock account
Debtors account
11.Which of the following is used to work out the balance of cash drawings
for an accounting period?
(a) Debtor account
(b) Credit account
(c) Cash payments journal
(d) Cash book
Cash book
12.Closing balance of cash can be obtained by drawing, up a:
(a) Balance sheet (b) Statement of affairs
(c) Income statement
(d) Cash account
Cash account
13. A method wherein omitted information is determined in the first place and by using this information net income or loss is ascertained is
known as:
(a) Nominal method
(b) Cash method
(c) Conversion method
(d) Net profit method
Conversion method
14. The amount of purchases made during 2017 is $3,500, calculated as the increase in creditors from $1,000 to $2,000 plus the payment of $500 made to creditors.
(a) $2500
(b) $500
(c) $1500
(d) $2000
$1500
15. The debtors account balance at 31st December 2017 is $1,500, calculated as the opening balance of $2,000 plus credit sales of $1,000, minus payments received from debtors of $1,500. (a) $1000
(b) $2000
(c) $1500
(d) $500
$1500
16. Calculate the amount of net income or loss if the capital has been increased by $1000 during this accounting period, drawing $5000 and $1000 fresh capital was introduced in the business:
(a) $5000 net loss
(b) $5000 net profit
(c) $6000 net loss
(d) $6000 net profit
$5000 net profit