43
The term ‘posting’ in Accounting refers to
- A. recording entries in the journal
- B. transferring the balance in the ledger to the trial balance
- C. tracing amounts from the journal to the ledger to find errors
- D. transferring entries to the ledger from the journal
44
Books of original entry are used for
- A. recording business transactions
- B. the adjustment of accounts
- C. reminding the book keeping to post transactions in the ledger
- D. informing the bookkeeper about the state of affairs
45
The effect of the payment of liability is that it
- A. increase both assets and liabilities
- B. increase assets and decrease liabilities
- C. decrease assets and increase liabilities
- D. decrease both assets and liabilities
46
The document that is used to acknowledge the acceptance of the return of goods by the seller from the buyer is known as
- A. credit note
- B. debit note
- C. invoice
- D. voucher
47
The instrument that are generated when firms enter into business transactions with others are called
- A. purchase document
- B. journals
- C. source documents
- D. invoices
48
Creditors use Accounting information for the purpose of
- A. planning sales to a company
- B. controlling a company's affairs
- C. investing in a company
- D. assessing a company's liquidity
49
In preparing accounting records, the owner of a business and the business are treated as
- A. the same person
- B. having business relationship
- C. separate legal entities
- D. partners
50
The most important reason for studying accounting is that
- A. the information provided by accounting is useful in making decision
- B. Accounting plays an important role in the society
- C. the study of Accounting leads to challeging career
- D. Accounting provides gross profit information