Reference no: EM132203502

FUNDAMENTALS OF ACCOUNTING

1. Which type of business organization is a separate legal entity whose owners are not personally liable for the debts of the business?

a) a record of closing entries

b) A listing of balances

2. It is usual for a retail shop to recognise revenue when:

a) the customer becomes legally obliged to pay for the goods

b) the customer pays for the goods sold

c) the goods for sale have arrived from the supplier

3. Canceling the balance of a customer account because the customer does not pay is________

a) adjustment entry

b) closing entries

c) writing off account

4. Which statement about long-term investments is not true?

a) they include investment in stock of other companies and land held for the future

b) They are not currently used in the operation of the business

c) They can never include cash accounts

5. Which of the below is not a tangible asset?

a) Forestry

b) Film financing

c) Gilts

6. Depreciation arises because of:

a) Fall in the market value of an asset

b) Physical wear and tear

7. Which of the following is not an amortizable asset?

a) Land improvement

b) Buildings

c) Land

8. Intangible assets are

a) listed under current asset on the balance sheet

b) not listed on the balance sheet because they do not have physical

c) noncurrent resources