ION 1
MULTIPLE-CHOICE QUESTIONS
Various options are provided as possible answers to the following questions. Choose
the answer and write only the letter (A-D) next to the question number (1.1.1-
1.1.5) in the ANSWER BOOK provided.
1.1.1 A/An
A. Asset
increases on the credit side and decreases on the debit side.
B. Liability
C. Expense
D. Profit
1.1.2 A person who buys goods from the business and promises to pay at a later
stage is called.....
A. Creditor
B. Salesman
C. Debtor
D. Postman


1.1.4 When a transaction affects more than one account in the General Ledger it is
called the ...
A. Money market
B. Double entry-principle
C. Accounting cycle
D. Subsidiary journal
​