ACCOUNTING PAPER
Section A — MCQs What is the accounting equation? A) Assets = Capital – Liabilities B) Assets = Liabilities + Capital C) Capital = Assets – Liabilities D) Liabilities = Assets + Capital Which account is a nominal account? A) Machinery account B) Capital account C) Rent expense account D) Capital introduced account When a person purchases goods in cash, which account is debited in the journal? A) Cash account B) Purchases account C) Capital account D) Sales account What is the purpose of a Bank Reconciliation Statement? A) To merge cash-book and bank-book only B) To identify differences between cash-book and bank statement C) To find errors only in bank statement D) To find errors only in cash-book If the depreciation method is “Straight Line”, how is depreciation calculated? A) Original cost of the asset B) Equal amount each year C) Different amount each year (reducing balance) D) Asset’s scrap value A bill of exchange that is accepted again ...