Principles of Accounts Revision Quiz

What is a Balance Sheet?

• A book that shows only assets.

• It is a financial statement that shows the assets, liabilities, and capital of a business at a specific date.

• A statement that shows liabilities and capital at a specific date.

• Is a written document of a business.

True or False. The Balance Sheet is also known as the Statement of Financial Position.

• True

• False

The most liquid asset is.....

• Cash

• Property

• Motor Vehicle

• Fittings

How many books of original entries are there?

• 5

• 6

• 4

• 7

The picture above represents which format of the balance sheet?

(a)  

True or False. The statement of financial position may be presented in one of two formats: The Horizontal or Vertical Format.

• True

• False

Purchase goods on credit from Sofea.

• Sales Journal

• Purchase Journal

• Cash Book

• Purchase Return Journal

Which of the following is not a Book of Prime Entry?

• Sales Journal

• Cashbook

• Purchases Journal

• Sales Ledger

Cashbook is used to record all cash and bank transactions

• True

• False

An article is subject to a 20% trade discount. Its listed

price is $600. What is the sale price?

• $120

• $480

• $580

• $720