just the answer ... no need for a reason 1. What is the purpose of preparing a cashbook? A. To record all the cash receipts B. To record all the cash deposited into bank account C. To record all the monies received by the business and all the payment made D. None of the above 2. Which of the following statement explains about 'Monetary Unit Assumption'? A. Only transaction data that can be expressed in terms of money be included in accounting record. B. All transaction (assets or services acquired) are to be recorded at cost. C. It requires that a company's financial statements report enough information for users to make knowledgeable decisions about the company. D. It requires that income and assets be reported at their lowest reasonable amount. 3. According to the accounting equation, when the owner's equity is constant, any increase in liability will cause _______ in assets. A. An increase B. A decrease C. No charges D. Uncertainty 4. Aqila Enterprise bought computer on credit from Shauki Infotech Sdn Bhd. What is the effect of this transaction? A. Increase in both asset and liability B. Increase in asset and decrease liability. C. Increase in liability and decrease in asset. D. Decrease in both asset and liability. 5. The company's net profits for the year is used for the followings EXCEPT: A. For retentions within the business B. To pay tax. C. To pay staff salaries D. To pay dividends 6. Which of the following statements does not describe the debit and credit concept? A. T-account represents a ledger account and is a tool used to understand the effects of one or more transactions. B. In an account where a debit is an increase, the credit is also an increase. C. When the sum of debits exceeds the sum of credits, the account has a credit balance D. The right side of an account is called the credit side, often abbreviated ad Cr. 7. What is net profit? A. Purchases + sales B. Gross profit + other income - expenses C. Sales less cost of goods sold D. Excess of cost of sales over sales 8. Which of the following statement about the trial balance is INCORRECT? A. Preparation of the final accounts is speeded up B. The totals of each column should agree C. All errors would be highlighted by the trial balance D. It provided a useful check on the accuracy of the ledger accounts 9. Which of the following is NOT an expenses? A. Salaries and wages payable B. Electricity bill C. Depreciation D. Salaries and wages 10. Which the following statements is FALSE? A. A trial balance provides a check on the equality of debits and credits B. A trial balance is a list of all accounts in the ledger with their balance C. A trial balance proves no error was made during the accounting process D. A trial balance may be taken at any time the postings are up to date 11. Revenue will decrease the value of the business while expenses will increase the value of the business. True False 12. External users of accounting information are not directly involved in running the organization. True False 13. Expenses can be divided up into product expenses, prepaid expenses and period expenses. True False 14. Return outward will be deducted from the sales figure of goods sold to the customers. True False 15.The realization concept means that profit comes the moment the goods are sold not when we received the money from customers True False 16. A statement of financial position is a report showing the assets and liabilities of a business at a specific date. True False 17. Financial accounting is mainly related to the preparation of financial statement to meet the needs of the interested parties, namely, internal and external users. True False 18. Users of accounting information can be categorized as yearly users and monthly users True False 19. Capital and revenue will decrease the owners' equity where as expenses and drawings will increase the owners' equity. True False 20. A complete set of accounts for a business is called a journal. True false False