Fill in the Blank Questions (FBQs):
FBQ1: The two main financial statements drawn up by a sole trader are comprehensive income statement and _______________________
Answer: *Statement of financial position*
FBQ2: __________________ is a form of accounting information needed for the day to day running of a business.
Answer: *Management accounting information*
FBQ3: The main advantage of the going-concern concept is _________________
Answer: *Increase patronage*
FBQ4: The effect of the historical cost concept on profit in a period of rising prices is____________________.
Answer: *Holding gain*
FBQ5: The relevant concept that justifies the charging to expense the cost of small waste basket even though the basket has useful life of several years is ______________
Answer: *Materiality*
FBQ6: ____________________ is the accounting concept which justifies the depreciation of non-current assets.
Answer: *Matching concept*
FBQ7: Mensa and Co., a sole trader, discovered that the business liability is in excess of the assets. He thus included his private assets in the Statement of financial position. _________________as accounting concept is violated.
Answer: *Entity concept*
FBQ8: Bank __________________ is the main source document for recording cash paid into the bank.
Answer: *Pay-in-Slip*
FBQ9: The total in a sales day book is transferred to ___________ account in the ledger.
Answer: *Sales ledger*
FBQ10: The duplicate copy of credit note will serve as the source document to record in the _________________ book.
Answer: *Returns inwards*
FBQ11: The importance of narration in a journal is to indicate the purpose and ________________ of the transaction.
Answer: *Authority*
FBQ12: The source document for cash sales is ______________ of cash receipt issued by the seller.
Answer: *Duplicate copy*
FBQ13: Information stored in a computer-based accounting system which can be arranged into any desired format is called _______________________.
Answer: *Database*
FBQ14: The relationship between the ledger and the Trial Balance is that a debit balance in the ledger will be on the _____________ side of the Trial Balance.
Answer: *Debit*
FBQ15: Trial Balance complements the usefulness of the double entry principle by testing whether the principle of __________________ is properly followed in recording in ledger accounts.
Answer: *Double entry*
FBQ16: The Error of Omission can affect the Trial Balance when——————-of the double entry of a transaction is posted to the ledger.
Answer: *Only one entry*
FBQ17: While the Trial Balance proves the equality of the debit and credit entries in the ledger, it does not __________ some errors.
Answer: *Detect*
FBQ18: It is common to divide the ledger for a large organisation into four separate ledgers known as the general ledger, ___________, sales ledger and purchases ledger.
Answer: *Private ledger*
FBQ19: The account in the general ledger that after posting shows the total amount owed and agrees with the totals in the subsidiary ledger is termed the _______ account.
Answer: *Purchases Ledger control*
FBQ20: Postings are made to the general ledger ____________________________
Answer: *Every month end*
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