Question 1
A sole proprietor paid his personal house utility bill of S$350 using money from the business bank account. Which accounting concept requires this transaction to be recorded as drawings rather than a business expense?
Correct Answer:
Accounting Entity Concept
Question 2
Tan Traders bought office equipment 3 years ago for S$12,000. Its current market value is estimated at S$16,000. Under the Historical Cost Concept, at what amount should the equipment be recorded in the accounting records initially?
Correct Answer:
S$12,000
Question 3
At the financial year-end, a retailer holds inventory that cost S$8,500. Due to damage, its estimated net realizable value is S$7,200. Which accounting concept justifies recording the inventory at S$7,200?
Correct Answer:
Prudence Concept
Question 4
Lim Enterprise received electricity services worth S$1,400 in December 2025 but paid the bill in January 2026. The financial year ends on 31 December 2025. According to the Accrual Concept, in which financial year should the S$1,400 expense be recognized?
Correct Answer:
In 2025, when the electricity was consumed
Question 5
Which accounting concept assumes that a business entity will continue operating for the foreseeable future and will not liquidate or curtail its operations significantly?
Correct Answer:
Going Concern Concept
Question 1
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About this Exam

Prepare with the N(A)-Level POA Practice Questions - Singapore-Cambridge GCE Normal (Academic) Level Principles of Accounts Exam practice quiz. This question bank includes 100 questions covering balance, inventory, account, year, and trade. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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N(A)-Level POA Practice Questions - Singapore-Cambridge GCE Normal (Academic) Level Principles of Accounts Exam

This practice set contains 100 questions from the matching question bank and focuses on balance, inventory, account, year, and trade. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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