Question

1) business which switches its stock valuation method regularly is violating the accounting principle of

(a) double entry. (b) consistency. (c) business entity. (d) prudence.

2) which of the following stages of the accounting cycle is correct?
(a) journalising, posting to the ledger, trial balance, financial statements
(b) posting to the ledger, journalising, trial balance, financial statements
(c) posting to the ledger, trial balance, financial statement, journalising
(d) trial balance, financial statements, posting to the ledger, journalising
3) which of the following are business organisations formed by members?
i)in cooperatives
ii non-profit organisations
iii partnerships
(a) i (b) ii (c) i and ii (d) i and iii

Answer 1

Explanation:The eight-step accounting cycle is important to know for all types of bookkeepers. It breaks down the entire process of a bookkeeper’s responsibilities into eight basic steps. Many of these steps are often automated through accounting software and technology programs. However, knowing and using the steps manually can be essential for small business accountants working on the books with minimal technical support.