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Introduction to Management Studies

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Submitted By r10nai
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SECTION A: MULTIPLE CHOICE

(Each correct answer is worth 2 marks)

Write the LETTER of the best answer for each of the questions in the box provided in the answer column.

Question 1 The statement “That for every debit entry, there shall be a corresponding credit entry” refers to

A. Double - entry Concept B. Disclosure Concept. C. Objectivity Concept D. Entity Principle

Question 2 Which of the following equations cannot be derived from the basic accounting equation?

A. Assets = Liabilities + Capital B. Assets – Liabilities = Capital C. Capital = Liabilities – Assets D. Assets – Capital = Liabilities

Question 3 An entity formed under law, having perpetual succession and limited liability, and appears as a legal person is a (an)

A. company. B. sole trader. C. partnership. D. unregistered club.

Question 4 The total of “Discount Allowed” column in the Cash Receipts Journal is posted to the

A. debit of discount allowed account. B. debit of discount received account. C. credit of discount allowed account. D. credit of discount received account.

Question 5 The purpose of the Sales Journal in a service enterprise is to record

A. cash sales of goods and services of a company. B. credit sales of services provided by the business. C. credit purchases of goods and services. D. cash purchases of services from suppliers.

Question 6 “Purchased a new computer from Datec (Fiji) Limited on credit $5,000”. The two ledger accounts involved in this transaction are

A. Computer account and cash at bank account. B. Datec

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