Which of these is a content of a master file?
All records relevant to the organisation
Records of assets of the organisation
A collection of data items
All records relating to employees
Correct answer is A
All record relevant to the organization: the records which are only relevant to the organization such as the name and address as well as summary information such as amount due and year to date sales will be in master file
Subscription in advance is treated in the balance sheet as a
Current asset
Current liability
Fixed asset
Long term liability
Correct answer is B
Current assets are assets of the company that can be easily converted to cash when needed
current liability: this is the liability owned to outsiders but still enjoying its benefit within a year e.g creditors, wages in arrears
The correct expression of accounting equation is
Assets = Liabilities + Equity
Net assets = Liabilities + Equity
Assets + Liabilities = Equity
Assets = Equity - liabilities
Correct answer is A
The fundamental accounting equation is Asset = Capital + Liabilities
Asset = Liabilities + Equity the total assets of the company is generated through liabilities to outsiders that the company is still enjoying in addition with the equity by the owners of the business
The principle of double entry developed from the axioms of accounting equation is given as
Assets + Liability = Equity
Assets + Equity = Liabilities
Liabilities + Equity = Asset
Liabilities + Equity = Net assets
Correct answer is C
Liabilities + Equity = Asset is given as the fundamental equation
What is the effect of transaction when cash is paid into the bank?
Bank balance decrease and cash balance increase
Bank balance decrease and cash balance decrease
Cash balance increase and bank balance increase
Cash balance decrease and bank balance increase
Correct answer is D
Cash balance decrease and bank balance increase: The cash as leaving the cash till and will be deposited into the bank