[TOTAL 10 PART A: Answer ALL questions. MARKS] This part consists of ten (10) multiple-choice questions. Choose the most suitable answer. 1. The term "Accounting" can be best defined as A. B. a document that reports on an organization's financial position. a system that measures business activities, processes financial information into reports and communicates the findings. a business plan. a method of recording business transactions. C. D. 2. Which of the following group(s) rely on accounting information for decision making? A. B. C. D. Managers Potential investors Creditors All of the above 3. The accounting concept which requires a transaction to be recorded twice in the books of accounts is known as A. B. C. D. duality concept materiality concept entity concept going concern concept 4. Which of the following accounting equation is correct? A B. C. D. Assets + Liabilities = Owner's Equity Assets + Owner's Equity = Liabilities Owner's Equity + Liabilities + Revenues = Expenses + Drawing + Assets Revenues + Assets + Drawings = Owner's Equity + Liabilities + Expenses 5. When a business paid the outstanding balance to a creditor (trade payable), the effect on the liabilities of the business is: A. B. C. D. An increase in liabilities. A decrease in liabilities. No effect on the liabilities, as (creditor) trade payable is an asset. No change in the total amount of liabilities