Adjusting entries ensure that : i. expenses are recognized in the accounting period in which they are incurred ii. revenue is recorded as soon as it is earned iii. financial statements present a true picture Which of the following is correct?

1.Which of the following statements is correct regarding the "accrual basis of accounting"?

2.Which special journal should be used to record sales on credit?

3.Which of the following is not part of the recording process?

4.Which of the following accounts is shown on the credit side of the trial balance?

5.A business maintains a petty cash book on an imprest system. The accountant provides the petty cashier with 1,000 taka at the

6.Kamal Traders receives an advance of 2,000 taka from a customer. This event results in: i. an increase in assets by 2,000 taka ii. an increase in owner's equity by 2,000 taka iii. an increase in liabilities by 2,000 taka Which of the following is correct?

7.Which of the following accounts does not have a normal debit balance?

8.On June 13, sales on credit were 7,500 taka, with credit terms of 2/10, n/30. On June 15, the customer returned goods worth 500 taka. How much cash will be collected on June 23 for full settlement?

9.Deposits in transit are 5,000 taka. How is this item adjusted in the bank reconciliation statement using the two-balance reconciliation method?

10.What type of account is 'Accumulated $Depreciation^{\prime}$?

11.What is the amount of the annual depreciation of the equipment?

12.What is the name of the error that occurs due to a lack of proper accounting knowledge?