On Pace Peeps Revision Quiz 1

Vehicles can be classified as a:

• Intangible Assets

• Current Assets

• Non Current Assets

• Non current Liabilities

The following principle is applied when recording assets:

• Historical cost principle

• Principle of prudence

• Equity principle

• Liability clause principle

The straight-line method of writing off depreciation can also be referred to as:

• The diminishing balance method

• The carrying value method

• The book value method

• The cost price method

When writing off depreciation on vehicles, the following general ledger accounts will be affected:

• Debit Depreciation; Credit Accumulated depreciation on vehicles

• Debit Accumulated depreciation on vehicles; Credit Depreciation

• Debit Depreciation; Credit Vehicles

• Debit Vehicles; Credit Accumulated depreciation on vehicles

A partnership is owned by at least:

• 1 person

• 2 people

• 3 people

• Unlimited amount of people

The capital account of the partner will be classified as:

• Asset

• Liability

• Income

• Owner’s equity

With a partnership, their drawings account will be closed off at the end of the financial year to:

• The profit and loss account

• The appropriation account

• The current account

• The bank account

The details of all assets in a business are kept in:

• the current asset register

• the asset register

• the income statement

• the asset statement

Accumulated depreciation on equipment can be classified as a/n:

• expense

• liability

• negative asset

• asset

A partnership is owned by a maximum of:

• 10 people

• 15 people

• 20 people

• Unlimited amount of people