Accounting Questions And Answers (Multiple Choice)

I am the only financial statement prepared on 
cash basis. What am I? A Statement of Cash Flow?   An Income Statement? Or a 
Statement of Equity Changes? The answer is a Statement of Cash Flow! I am the reward for labour expensed 
in the profit or loss account!   What am I? Salaries and Wages? 
An Accounts Payable? Or Taxes? The answer is Salaries and Wages! I am the point where no profit or loss 
is made! What am I? A break-even point?   A net point? Or a zero point? The answer is a break-even point! I'm a ledger! What type of book am i? A subsidiary 
ledger? A journal ledger? Or a prime ledger? The answer is a prime ledger! When I'm applying the prudence concept, what 
am I doing? Recognizing all losses? Recognizing   realized losses but not recognizing 
profits? Or anticipating losses? The answer is anticipating losses! A credit note is sent to 
whom? A creditor or a debtor? The answer is a debtor! The accounting cycle begins by recording which 
of the following in the form of journal entries?   Financial information? Business 
contracts? Or business transactions? The answer is business transactions! Once journal entries are 
recorded, they can be posted   to? General journals? Ledger 
accounts? Or expense reports? The answer is Ledger accounts! The accrual basis of accounting records revenues 
when they are: Collected? Earned? Or Contracted? The answer is earned! Net income equals: Total revenues 
minus cost of goods sold?   Total revenues minus total expenses? Or 
revenues minus expenses plus income taxes? The answer is total revenues minus total expenses!

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