When compiling accounting records, for which of the following would a subsidiary ledger and control account system never apply?

	a.	Inventory
	b.	Accounts receivable
	c.	Marketable Securities
	d.	Plant and Equipment
	e.	None of the above

When reversing entries are implemented in an accounting system, which of the following categories of adjusting entries are always reversed?

	a.	Accrued Expenses YES Accrued Revenue YES Depreciation NO
	b.	Accrued Expenses NO Accrued Revenue NO Depreciation YES
	c.	Accrued Expenses YES Accrued Revenue NO Depreciation NO
	d.	Accrued Expenses YES Accrued Revenue YES Depreciation YES
	e.	Accrued Expenses NO Accrued Revenue NO Depreciation NO

Which accounting assumption(s) is/are set aside when an entity goes into liquidation?

	a.	Going concern assumption
	b.	Materiality assumption
	c.	Conservatism assumption
	d.	Entity assumption
	e.	Monetary assumption

Which of the following statements concerning business entities is incorrect:

	a.	Individual partners are personally liable for partnership debts
	b.	The liability of shareholders to contribute to the debts of their company is normally limited
	c.	A sole proprietorship is an accounting entity
	d.	The shareholders of a company do not automatically receive dividends when a company makes a profit during the financial year
	e.	Partnerships are regarded as separate legal entities

Which transaction could result in a Debit balance in an Accounts Receivable account?

	a.	Receipt of a deposit for work ordered
	b.	Return of faulty goods by a customer after payment had been made
	c.	Discount being allowed to a customer after the debt they owed was paid early
	d.	All of the above
	e.	None of the above

Answer rating: 100% (QA)

1 Examples of subsidiary ledgers are Accounts Receivable Ledger Accounts Payable Le... View the full answer