Principles of Accounting
Sole traders differ from other types of trading organizations. Which of the following statements correctly summarizes the key characteristics of a sole trader’s business?
Liability is limited to the providers of loan finance and only the trader takes an active part in managing the business.
The trader has unlimited liability and runs the business in conjunction with the providers of loan finance.
The trader has unlimited liability and must have the business accounts audited.
The trader has unlimited liability, takes sole responsibility for management of the busines.
The trader has unlimited liability, takes sole responsibility for management of the busines.
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Market value of investments is shown as a fool note according to:A. Convention of disclosure
B. Convention of consistency
C. Convention of conservation
D. None of these
The act of collecting processing reporting, analyzing, interpreting and projecting financed information is called:
A. Economics
B. Accounting
C. Information to business
D. Introduction to business
Ledger is a book in which :
A. Only real accounts are opened
B. Only real and personal accounts are opened
C. All the real and personal accounts are opened
D. None of these
Transactions renting to persons or institutions:
A. Real accounts
B. Nominal account
C. Personal accounts
D. Drawings account
When we post the various entries from the journal into the ledger, we should write the ledger page in the:
A. Ledger folio column of journal
B. Journal folio column of journal
C. Both A and B
D. None of these
The “qualitative aspect” of things are ignored by:
A. Dual aspect concept
B. Entity concept
C. Money measurement concept
D. None of these
Accounting to the journalizing rule, the page numbers of the ledger where the two concerned accounts have been posted are written in:
A. The first column of journal form
B. The second column of journal form
C. The third column of journal form
D. The forth column of journal form
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