Accounting unit 1

Which are the users of accounting information?

• Owners

• The bank

• Business workers

• Investors

• Tax inspectors

Which accounting correction is INCORRECT?

• Asset= Liability + Owners Equity

• Liability= Owner's Equity + Asset

• Asset = Owner's equity - Liability

• Liability = Asset - Owner's Equity

Which of items listed below is an ASSET?

• Bank overdraft

• Goods/stock/inventory

• machinery

• Trade payables (creditors)

• Trade receivables (debtors)

Calculate the the following...

Assets- $12,350

Liability-$3,400

Owner's Equity- ?

• $7,820

• $15,750

• $8,950

Which of items listed below is a LIABILITY?

• Trade payables (creditors)

• Loan from D. Benny

• Motor Vehicle

• Premises

• Owing to bank

Identify the effects of the following transaction:

Bought a motor vehicle by bank.

• Asset increase

• Liability increase

• Asset decrease

• Capital increase

Identify the effects of the following transaction:

Goods sold on credit to A.Moore

• Asset increase

• Liability increase

• Asset decrease

• Capital increase

Identify the effects of the following transaction:

The owner puts a further $5,000 cash into the business account.

• Liability increase

• Capital increase

• Asset decrease

• Asset increase

Identify the effects of the following transaction:

J Walker lends the firm $500 by cheque.

• Liability increase

• Capital increase

• Asset decrease

• Asset increase

Which of the following is an expenses?

• Rent received

• Wages and salaries

• Telephone bill

• Stationeries

• Discount received