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Supplementary objective test questions

2.3 Who is responsible for the issues of International Financial Reporting
Standards?

A The IFRS Advisory Council

B The International Financial Reporting Interpretations Committee

C The International Accounting Standards Board

D The European Union

CHAPTER 3 – LEDGER ACCOUNTING AND DOUBLE-ENTRY
BOOKKEEPING

3.1 The double-entry system of bookkeeping normally results in which of the
following balances on the ledger accounts?

Debit balances: Credit balances:

A Assets and revenues Liabilities, capital and expenses

B Revenues, capital and liabilities Assets and expenses

C Assets and expenses Liabilities, capital and revenues

D Assets, expenses and capital Liabilities and revenue

3.2 ABC run a business selling computers. On 6th of June 20X3, they employed an
administrator for the business and took a computer from the store room for the
new administrator to use in the office.

What is the double entry for this transaction?

A Dr Drawings Cr Cost of sales

B Dr Non-current assets Cr Cost of sales

C Dr Cost of sales Cr Drawings

D Dr Cost of sales Cr Non-current assets

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