Question

14.       Every business transaction affects at least ________ accounts:

1. One

2. Two

3. Three

4. Infinite

15.       The most common imprest system is the ________ system:

1. Discount

2. Petty cash

3. Cash book

4. Cash receipt

16.      Is it true that the trial balance totals should agree?

1. Yes, always

2. No, there are sometimes good reasons why they differ

3.   No, because it is not a statement of financial position

4. Yes, except where the trial balance is extracted at the year end

                                               

Answer 1

14.       Every business transaction affects at least Two accounts.

The correct answer is B.

According to double entity concept, every business transaction effects at least two accounts. One is debited and other is credited.

According to this concept -

Total Assets = Total liabilities + Capital

15.       The most common imprest system is the Petty cash system.

The correct answer is B.

In petty cash imprest system the fixed amount is given to petty cashier in the beginning of the period and he makes the petty expenses of the firm out of that amount. At the end of the period the amount which is spend is given back to him to cover up the fixed amount and the cycle continues.

Hope it helps!