Introduction to Accounting

The definition of an Asset is

• The cost of running the business

• Items of value owned by the business

• Items owned by the business

• money owed by the business to external parties

Which of the following items is not and asset.

• Cash at Bank

• Motor Vehicle

• Stationery

• Inventories

A Bank Loan is classified as a:

• Revenue

• Expense

• Asset

• Liability

Owner's Equity is defined as

• the cost of running the business

• the owners investment in the business

• the amount owed to suppliers

• the amount owed to the business from customers

Revenues are a credit nature because

• they decrease the owners investment

• they increase the owners investment

To calculate the GST when it is inclusive you need to:

• times by 10

• divide by 10

• times by 11

• divide by 11

Which of the following will have GST included:

• Apples

• Tinned Peaches

• Meat

• lettuce

Is the following statement True or False:

GST Paid is collected on purchases made by the business an is able to be claimed back from the ATO

• True

• False

Which of the following does not represent the accounting equation.

• A=L+OE

• L=A+OE

• OE=A-L

For Double Entry Accounting the rule is:

• Debit = Credits

• Debits - Credits

• Credits -Debits

• Debits + Credits