Principles of Accounts

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

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

Which one is right?

• Asset = Owner's equity + Liability

• Asset = Owner's equity - Liability

• Asset + Owner's equity = Liability

• Asset + Owner's equity = expense

Which one is not belongs to liability?

• Mobile Phone Bill

• Bank Loan

• Bank Balance

• Owed To Friends

Accounting is

• recording anything that happens in the business

• recording the business transactions

• recording, analyzing and interpreting the business transactions

• recording, summarizing, analyzing and interpreting the business transactions

The recording of transactions in the accounting books of a business is called :

• accounting

• book-keeping

• liabilities

• resources

All businesses are started with the aim of making ...

• Capital

• sound investments on the stock market

• A profit

• their owners popular

Which of the following is considered a long-term asset?

• Cash

• Accounts Receivable

• Property, Plant, and Equipment

• Inventory