PROFESSIONAL CERTIFICATE EXAMINATION
TEST 2026 QUESTIONS WITH VERIFIED
ANSWERS
◉ Economic Entity Principle. Answer: A business is a separate entity
from owners and other businesses and must keep separate books.
◉ Assets =. Answer: debits increase and credit decreases
◉ liabilities =. Answer: decrease in debts and increase in credits
◉ equity =. Answer: decrease in debits and increase in credits
◉ income =. Answer: decrease in debits and increase in credits
◉ expenses =. Answer: debits increase and credits decrease
◉ expenses + assets =. Answer: liabilities + equity + income