Chapter 2： The accounting equation

which of the following is a liability?

• depreciation

• an accrual

• cash at bank

• plant and machinery

capital is the amount

• the entity's owners owe to the entity

• the entity's customer owe to the entity

• the entity's owes to its creditors

• the entity "owes" to its owners

which of the following expenses is included in cost of sales?

• salaries of sale staff

• management salaries

• overdraft interest

• cost of raw materials

the accounting equation can be written as:

• assets + profits -drawings - liabilities = closing capital

• assets -drawings - liabilities = opening capital + profits

• assets - liabilities - opening capital + drawings = profits

• opening capital + profit - drawings - liabilities = assets

a business can make a profit and yet have a decreased bank balance. which of the following might cause this happen?

• the sale of non-current assets at a loss

• the charging of depreciation in the statement of profit or loss

• the lengthening of the period of credit given to customers

• the lengthen of the period of credit taken from suppliers

a sole trader purchases goods on credit

• assets and liabilities

• assets and capital

• capital and liabilities

• assets only

a sole trader sells goods for cash for GBP500 and had a cost GBP300

Which elements of accounting equation will change due to this transaction

• assets and liabilities

• assets and capital

• capital and liabilities

• assets only

which of the following is an asset?

• a trade payable

• a loan

• drawing

• a prepayment