One of the major features of bookkeeping is that it?
A
provides permanent records for all financial transactions
B
is futuristic in nature
C
accpets responsibility for all wrong postings
D
does not give room for double entry procedures
CORRECT OPTION:
a
2
Which of the following accounting conventions suggests that accountants should use a method of valuation that understates rather than over-states results?
A
Conservatism
B
Historical
C
Monetary
D
Cost
CORRECT OPTION:
a
3
A financial analyst needs accounting information to?
A
maintain the production section of the business
B
know why transactions cause increase and decreases in assets
C
advise on how to manage the business
D
know how to record transaction in T account
CORRECT OPTION:
c
4
One basic assumption of the double entry theory is that it allows?
A
two credit entries at the same time
B
two debit entries at the same time
C
debit and credit two credit entries at the same time
D
debit and credit two credit entries in corresponding account