Accounting Elements

Which of the following is an asset of a business?

• Machinery owned by the business.

• Money owed by the business to one of its suppliers in respect of goods purchased on credit.

• An overdrawn balance on the business's bank account.

• The capital of the business.

Which of the following is a liability of a business?

• A building owned by the business

• Cash in the business's safe.

• Money owed to the business by its debtors.

• Money which the business has borrowed and has not yet repaid.

Which of the following equations is correct?

• Assets + Owner's Equity = Liabilities

• Liabilities - Owner's Equity = Assets

• Owner's Equity = Assets + Liabilities

• Owner's Equity = Assets - Liabilities

Which of the following is correct?

• Asset=$7,850 Liabilities=$1,250

  Equity=$6,600

• Assets=$8,200 Liabilities=$2,800 Equity=$11,000

• Assets=$9,550 Liabilities=$1,150 Equity=$8,200

• Assets=$5,420 Liabilities=$5,540 Equity=$1,120

The following is a list of the assets and liabilities of a business at a particular date.

Premises owned by the business                           $20,000     

Money owed by the business to its creditors              $3,000     

Goods owned by the business $8,500    

Loan received by the business from a bank   $4,000     

Cash in the business's safe                                           $100

The businesss capital at that date is:

• $21,100

• $21,600

• $32,400

• None of the above.

When a business pays one of its creditors by cheque, the effect on its assets and liabilities is:

• Effect upon Assets Reduce bank

  Effect upon Liabilities

  Reduce trade payable

• Effect upon Assets Increase bank

  Effect upon Liabilities

  Increase trade payable

• Effect upon Assets Reduce bank

  Effect upon Liabilities

  Increase trade payable

• Effect upon Assets Reduce bank

  Effect upon Liabilities

  Increase trade receivable

Given the following, what is the amount of Capital?  

Premises $40000, Inventory $8500, Cash at bank $100.   

Trade payables $3000, Loan from William $4000.

• $41 100

• $41 600

• $32 400

• None of the above

What is the word used for payment made by business for amount incur in order to operate a business?

What do you called money or goods taken out by the owner for personal use?

Business pay this to the landlord in order to display your goods in a shop.