Accounting For Managers

141. Transferring the debit and credit item from the journal to the respective accounts is called

  1. Compound Journal
  2. Ledger
  3. Trial balance
  4. None of these
Correct answer: (B)
Ledger

142. A statement containing the various ledgers balances on particular date

  1. Compound Journal
  2. Ledger
  3. Trial balance
  4. None of these
Correct answer: (C)
Trial balance

143. Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings?

  1. Net Loss
  2. Net income
  3. Dividend
  4. Investment by share holder
Correct answer: (B)
Net income

144. The full disclosure principle, as adopted by the accounting profession, is best described by which of the following?

  1. All information related to an entity's business and operating objectives is required to be disclosed in the financial statements.
  2. Information about each account balance appearing in the financial statements is to be included in the notes to the financial statements.
  3. Enough information should be disclosed in the financial statements so a person wishing to invest in the stock of the company can make a profitable decision.
  4. Disclosure of any financial facts significant enough to influence the judgment of an informed reader
Correct answer: (D)
Disclosure of any financial facts significant enough to influence the judgment of an informed reader

145. The trial balance is ______________

  1. Is a formal financial statement.
  2. Is used to prove that there are no errors in the journal or ledger.
  3. Provides a listing of every account in the chart of accounts.
  4. Provides a listing of the balance of each account in active use.
Correct answer: (D)
Provides a listing of the balance of each account in active use.

146. Investment in Bonds should be disclosed on the balance sheet.

  1. On liability side of balance sheet
  2. On Assets side of balance sheet
  3. On both side of Balance sheet
  4. None of these
Correct answer: (B)
On Assets side of balance sheet

147. Which of the following functions is managerial accounting intended to facilitate?

  1. Planning
  2. Decision making
  3. Control
  4. All of these
Correct answer: (D)
All of these

148. Accounting principles are

  1. As definite as principles of physics and chemistry
  2. Unlike principles of physical sciences.
  3. Verifiable through observations and records
  4. Thoughts of accountant
Correct answer: (B)
Unlike principles of physical sciences.

149. Business entity concept distinguishes between:

  1. Individual and business
  2. Business and business
  3. Owners
  4. Debtors and creditors
Correct answer: (A)
Individual and business

150. Financial account provide summary of:

  1. Asset
  2. Liability
  3. Accounts
Correct answer: (C)
Accounts
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