Accounting Review 1

Which of the following Statements are incorrect?

• Assets + Capital = Liabilities
• Capital = Assets - Liabilities
• Liabilities + Capital = Assets
• Liabilities = Assets - Capital

Which of the following is not an asset?

• Cash at the bank

• Premises

• Stock

• Creditors

Which of the following is a liability?

• Buildings

• Debtors

• Loan from J. Henry

• Equipment

Which of the following is incorrect?

• Assets -18,270 Liabilities - 5,290 Capital - 12,980

• Assets -9,340 Liabilities - 3,120 Capital - 6,220

• Assets -15,160 Liabilities - 6,380 Capital - 7,780

• Assets -12,230 Liabilities - 1,390 Capital - 10,840

Which of the following statements is correct

• A

• B

• C

• D

Which of the following are incorrect?

• (i) & (ii)

• (ii) & (iii)

• (i) & (iii)

• None of them

Which of the following are incorrect?

• (ii) & (iv) only

• (i) , (ii) & (iii) only

• (iii) & (ii) only

• (iii) & (iv) only

Which of the following statements is correct

• (i) & (iv) only

• (ii) & (iii) only

• (ii) & (iv)

• (i) & (iii)

Which of the following best describes the meaning of ‘Sales’?

• Items sold for cash or on credit

• Assets sold on credit

• The sale of items bought previously

• Sale of items previously included in ‘Purchases’

Which of the following should not be called ‘Purchases’?

• Purchase of a motor van for use by a business
• Goods bought on credit
• Goods bought for cash
• Items bought for the prime purpose of resale