11 Accounting - Lesson 5

Interest paid on mortgage is

• liability

• expense

• revenue

• owner's equity

Drawings are

• liability

• expense

• owner's equity (positive)

• owner's equity (negative)

A Statement of Financial Position is a list of all the ______, liabilities and owner's equity of an organisation at a particular point in time.

Capital contributions from the owner are an example of

• internal sources of funds

• external sources of funds

Another name for Accounts Receivable is

• creditors

• debtors

• debitors

• amounts payable

Your business decides to buy shares in BHP. Where would the share investment be recorded?

• Statement of Financial Position as an asset

• Statement of Financial Position as owner's equity

• Statement of Profit or Loss as an expense

• Statement of Profit or Loss as revenue because the business will receive dividends from the shares

The principle or concept that states that the accounting records of the business must be kept separate from the owner is known as the

• Monetary principle

• Accounting entity concept

• Separate legal entity concept

• Unlimited liability concept

The goods held for use in a service business are known as

• inventories

• cost of goods sold

• supplies

• credits

The financial statement which gives users an indication about the financial stability of the business is the

• Statement of Financial Position

• Statement of Profit or Loss

• Statement of Cash Flows

Loan to C. Charles would be considered (select all that apply)

• asset

• liability

• accounts payable

• accounts receivable