Please answer with reason why the options are correct and why the other options are not correct

Accounting

1. Which of the following statements is not correct?

(a) A debit entry will decrease an expense

(b) A debit entry will increase an asset

(c) A debit entry will decrease a liability

(d)A debit entry will increase an expense

2. Albert Ltd paid rent of GHS 7,000 for 14 months in a year ended 31# December, 2018. How

much rent will be charged in the Income Statement for the year ended 31* December, 2018?

(n) GH 1.000

(b)GH, 5.000

(c)GH 6,000

(d)GH 7,000

3. A complete set of financial statements includes:

(a) An Income Statement Account

(b) A Statement of Financial Position

(c) Explanatory Notes and Accounting Policies

d)All of the Above

4. Which of the following statements is incorrect?

(a) Assets - Capital = Liabilities

(b) Liabilities + Capital= Assets

(c)

Liabilities + Assets = Capital

(d) Assets - Liabilities = Capital

5, Which of the following is not a current liability?

(a) Accounts payable

(b) Bank Overdrnft

(c) Bank Loan payable within one year

(d)

Bank Loan payable after one year

6. Patents, Copyrights and Trademarks are

(a) Current nssets

(b) Fixed assets

(e)Intangible assets

(d) Investments

7. Which of the following is not a current asset?

(a) accouuts receivable

(b) Inventory of finished products

(c) Inventory of mw materials

(d) Land

8. The matching principle attempts to find satisfactory bases of association between

(n) Assets and linbilities

(b) Expenses and revenues

(c)

Internal equities and external liabilities

(d) None of these

9. Credit notes are sent to customers when:

(a) They request for details of their outstanding debt

(b)They return faulty goods or goods not to specification

(c)To provide details of goods/services supplied

(d)An original invoice has been lost

10. What is the effect of loss on accounting equation?

11.Which of the following statements is not correct?

(a)A credit entry will decrease an asset

(b)A credit entry will increase a liability

(c)A credit entry will decrease a liability

(d) A credit entry will increase an income

12. A debit note is a document made out when goods are

(a) returned

(b)overcharged

(e)sold

(d)undercharged

13. What is the effect of profit on accounting equation?

(a) it reduces assets and increase capital

(b) It increases assets and increases capital

(c)It increases assets and reduces capital

(d) It reduces assets and reduces capital

14.Journal is a book of

(a) original

(b) Secondary

(c) Both (a) and (b)

(d) None of the above

entry

15. Which of the following is not a carrent asset?

(n) Accounts receivable

(b) Inventory of finished products

(e)Inventory of raw materials

(d) Land

16. The matching principle attempts to find satisfactory bases of association between

(p) Assets and liabilities

b) Expenses and revenues

(c)Internal equities and external liabilities

(d) None of these

17. Credit notes are sent to customers when:

(a)They request for details of their outstanding debt

(b)They return faulty goods or goods not to specification

(C)To provide details of goods/services supplied

(d) An original invoice has been lost