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Question: What is the primary purpose of capital budgeting?Options: To determine the profitability o..
Question: Which principle requires that expenses be matched with revenues in the period in which the..
Question: Which of the following is an example of a non-current asset?Options: InventoryAccounts Rec..
Question: What is the purpose of an audit?Options: To prepare financial statementsTo detect fraudTo ..
Question: What method of depreciation allocates an equal amount of depreciation expense each year?Op..
Question: In preparing final accounts, which statement is prepared first?Options: Balance SheetIncom..
Question: Which of the following is NOT a component of a trial balance?Options: AssetsLiabilitiesEqu..
Question: What is the primary purpose of a journal entry in accounting?Options: To summarize financi..
Question: What is the formula for calculating return on equity (ROE)?Options: Net income / Total ass..
Question: What is the primary focus of accounting standards?Options: To maximize profitsTo ensure co..
Question: Which ratio is used to measure a company\'s liquidity?Options: Debt to equity ratioCurrent..
Question: What is the effect of inventory valuation on financial statements?Options: It affects only..
Question: Which accounting principle requires that expenses be matched with revenues?Options: Revenu..
Question: Which of the following methods is NOT used for inventory valuation?Options: FIFOLIFOWeight..
Question: Which of the following is a liquidity ratio?Options: Debt to Equity RatioCurrent RatioRetu..
Question: What is the effect of an overstatement of ending inventory on the financial statements?Opt..
Question: Which accounting standard governs the valuation of inventory?Options: IFRS 15IAS 2IFRS 9IA..
Question: What is the journal entry to record depreciation expense?Options: Debit Depreciation Expen..
Question: Which inventory valuation method results in the highest ending inventory during inflation?..
Question: What is the purpose of a trial balance?Options: To prepare financial statementsTo ensure t..
Question: What is the journal entry to record the sale of goods for cash?Options: Debit Cash, Credit..
Question: What is the journal entry for recording depreciation expense?Options: Debit Depreciation E..
Question: Which inventory valuation method can lead to lower taxes during inflation?Options: FIFOLIF..
Question: What is the impact of using straight-line depreciation on financial statements?Options: It..
Question: What is the journal entry to record the sale of inventory at a profit?Options: Debit Cash,..
Question: Which accounting standard requires the use of fair value for certain financial instruments..
Question: What is the effect of an error in the trial balance?Options: It will not affect the financ..
Question: How is inventory valued under the FIFO method?Options: Based on the most recent purchasesB..
Question: What is the journal entry for recording depreciation expense on equipment?Options: Debit D..
Question: Which of the following is a characteristic of LIFO inventory valuation?Options: Matches cu..
