PRINCIPLES OF ACCOUNTS FORM 5 TEST

What is a balance sheet?

• A final account

• A snapshot of the business' financial position of at a particular point in time.

• It shows the business' assets, liabilities and capital

Identify the categories of accounts found on the balance sheet.

• Assets, liabilities, capital

• Expenses, liabilities, income

• Financed by, expenses, revenue

All are examples of current assets except

• bank

• debtors

• loans

• inventory

The term current assets refer to assets that are likely to change

• 6 months

• 2 years

• 3 months

• 1 year

Gross profit is calculated in the

• profit and loss account

• balance sheet

• trading account

• trial balance

Net profit is

• sales less purchases add opening stock less closing stock

• gross profit add expenses of the period

• capital plus all expenses

• gross profit less expenses of the period

In the trading account the return inwards should be

• added to cost of goods sold

• deducted from purchases

• deducted from sales

• added to sales

What is the correct order for current assets in the balance sheet?

• cash, bank, debtors, stock

• stock, debtors, bank, cash

• stock, bank, cash, debtors

• debtors, stock, bank, cash

A good financial control of a business means

• the accountant is controlling the finances of the business

• expenses is greater than revenues

• income is greater than expenses

• the business has not made a profit

the recording and posting of financial data is called

• asssets

• liaiblities

• book keeping

• accounting