Classification of Accounts

Which of the following are Fixed Assets?

• Bank Loan

• Bank Account

• Bank overdraft

• Furniture and fittings

Select the long term liability.

• Bank Overdraft

• Stock

• Mortgage

• Creditors

When the business is owed money, these people are called?

• Creditors

• Debtors

• Expenses

• Revenue

Which if the following is an expense?

• Mortgage

• Bad Debt

• Sales

• Fees Received

Which if the following is a revenue?

• Sales

• Salaries

• Debtors

• Advertising

Which of the following increases capital?

• Loss

• Expenses

• Drawings

• Revenues

Which of the following decreases capital?

• Investment

• Expenses

• Income

• Revenues

What is the difference between fixed assets and current assets?

• Fixed assets provide benefits that are used within one financial period but current assets provide benefits that last beyond one financial period

• Fixed assets provide benefits that last beyond one financial period but current assets provide benefits that are used within one financial period

• Fixed assets are easily converted to cash but current assets are not easily converted to cash easily

• Fixed assets are not loans but current assets are loans

Which of the following are current assets?

• creditors, loan, cash at bank

• cost of sales, sales returns, cash in hand

• debtors, utilities, sales revenue

• cash at bank, stock, debtors

Which of the following are fixed assets?

• cash in hand, loan, debtors

• motor vehicles, equipment, land & premises

• stock, cash at bank, capital

• creditors, equipment, electricity expense