Types of accounts

1. Select the main purpose of accounting.

• Know whether the business earned a profit.

• Identify the financial position of the business

• Provide useful financial information to stakeholders to make decisions

2. Select all the transactions that can be identified.

• Sale of goods for Rs. 15 000 with a discount of Rs. 2500.

• Cleaning expenses paid Rs. 1500

• Purchase of Furniture on credit from R De Mel worth Rs 50 000

• Applying for a bank loan of Rs. 100 000

3. The resources of the business that belong to the owner(s) once liabilities are settled are called

• Assets

• Liability

• Equity

4. Which is NOT a characteristic of Liabilities?

• Result of a past transaction

• Current obligation to pay an external party

• Future inflow of resources into the business

Select the type of resource the following can be classified as:

Capital

• Asset

• Liability

• Equity

• Expenses

• Income

Select the type of resource the following can be classified as:

Goods

• Asset

• Liability

• Equity

• Expenses

• Income

Select the type of resource the following can be classified as:

Rent paid

• Asset

• Liability

• Equity

• Expenses

• Income

Select the type of resource the following can be classified as:

Cash

• Asset

• Liability

• Equity

• Expenses

• Income

Select the type of resource the following can be classified as:

Bank Loan

• Asset

• Liability

• Equity

• Expenses

• Income

Select the type of resource the following can be classified as:
Telephone bill of owner

• Asset

• Liability

• Equity

• Expenses

• Income