Objective questions based on basics of accounts


Question1: Which of the following would not be considered an internal user of accounting data for the ABC Company?

[A] Merchandise inventory clerk

[B] President of the employees' labor union

[C] President of the company

[D] Production manager

Question2: Credits;

[A] increase both assets and liabilities

[B] increase assets and decrease liabilities

[C] decrease both assets and liabilities

[D] decrease assets and increase liabilities

Question3: Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction?

[A] The sale of store equipment.

[B] Payment of income taxes.

[C] The appointment of a new CPA firm to perform an audit.

[D] The purchase of a new computer.

Question4: The normal balance of any account is the;

[A] side which increases that account

[B] side which decreases that account

[C] left side

[D] right side

Question5: At January 1, 2008, Burton Industries reported stockholders' equity of $130,000. During 2008, The Company had a net loss of $30,000 and paid dividends of $20,000. At December 31, 2008, the amount of stockholders' equity is;

[A] $100,000

[B] $130,000

[C] $140,000

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Accounting Basics: Objective questions based on basics of accounts
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