Accounting Elements

Section A:

Answer all the questions in Section A, B and C. For each question, there are four possible answers. Let's start!

Which of the following statement best defines an asset?

• Assets are debts owed by customers that are expected to generate future benefits.

• Assets are resources belonging to the owner that are expected to generate future benefits.

• Assets are resources owned by the business that are expected to generate future benefits.

• Assets are items that are useful and of value e.g. laptop, iphone, skateboard etc.

Which answer contains ONLY assets?

• Car, equipment, land and trade receivable.

• Bank loan, truck, shelves and computer.

• Printer, motorbikes, inventory and capital.

• Desk, photocopier machine, trade payable and factory.

What is the asset group for desk, chairs, shelves and lightings?

• Motor vehicle

• Plant and equipment

• Office equipment

• Fixtures and fittings

What is the asset group for laptop, computer and photocopier machine?

• Equipment

• Office equipment

• Fixtures and fittings

• Inventory

What are goods kept in the business to be sold to customers known as?

• Fixtures and fittings

• Inventory

• Trade receivable

• Other receivable

What is trade receivable?

• The amount the business owes to a customer

• The amount a supplier of goods owes to the business

• The amount a customer owes to the business

• The amount the business owes to a supplier of goods

What is trade payable?

• The amount the business owes to a customer

• The amount a supplier of goods owes to the business

• The amount a customer owes to the business

• The amount the business owes to a supplier of goods

Which one is not a liability?

• Bank loan

• Long term borrowing

• Cash at bank

• Bank overdraft

What is capital?

• Cash contributed by the owner to operate the business

• Assets contributed by the owner to operate the business

• Assets that have been taken out of the business by the owner for business use

• Assets that have been taken out of the business by the owner for his personal use

1. What is the amount taken out by the owner from the business for his personal use known as?

• Drawing

• Capital

• Cash in hand

• Cash at bank