Business Basics Review Quiz #1

Which of these is not included as a separate item in the basic accounting equation?

• Assets

• Revenue

• Liabilities

• Equity

Which is true about fixed assets?

• They were not bought primarily to be sold

• These are items that are likely to change in the short term

• They are items that have to be paid within a year.

• They are expenses which have been paid in advance

Which of the following is NOT true about bookkeeping?

• Bookkeeping is primary stage

• Work is performed by junior staff.

• A book keeper can do the work of an accountant

• Bookkeeper job is often routine and clerical

Which of the following users of accounts is internal?

• Investors

• Sales Staff

• Customers

• Government

A person who creates goods and services is called a:

• Producer

• Consumer

• Business person

• Trader

Another name for the accounting equation is:

• Accounting Expression

• Assets, liabilities and capital framework

• Balance Sheet Equation

• Income Statement

The liability arising from the purchase of goods or services on credit is called:

• Debtors

• Accounts payable

• Loan

• Accounts receivable

The statement which shows the financial position of a business at a particular date is termed as:

• Financial statement

• Income statement

• Bank statement

• Balance sheet

When a good is traded between countries it is called a:

• Commodity

• Loss

• Profit

• Good

Which of the following statements is false?

• A liability is a debt for your business.

• Debtors are owned by the business for a short time

• The accounting equation shows how much of your assets belong to the owner, and how much ‘belong’ to people outside the business.

• A loan is always considered a current liability