Introduction to Accounting as a system

Which of the following is the correct definition for the term transactions?

• A list of items in a business

• A summary of activities in a business

• People who operate a business

• A program used by the business.

John owes Sally $500. John is Sally's _____________.

• Business partner

• Accountant

• Debtor

• Creditor

The third stage of the accounting cycle is _____________.

• Double Entry

• Source documents

• Trial Balance

• Income Statement

Another name of the Balance Sheet is ____________________.

• Income Statement

• Journal

• Statement of Financial Position

• Trading and Profit and Loss Account

All of the following are examples of Assets EXCEPT

• Cash at the Bank

• Cash in Hand

• Building

• Creditors

If Assets amounts to $1 500 and Liabilities amounts to $600, what is the amount for Capital?

• $800

• $850

• $900

• $2 100

If Capital amounts to $2 550 and Liabilities amounts to $400, what is the amount for Assets?

• $2950

• $2150

• $2800

• $3050

All of the following are Books of Original Entry EXCEPT

• Cash receipt

• General Journal

• Petty Cashbook

• Purchases Daybook

All of the following are Source Documents EXCEPT

• Petty Cashbook Voucher

• Cheque

• Credit Note

• Returns Journal

The fifth Stage of the Accounting Cycle

• Balance Sheet

• Source Documents

• Income Statement

• Double Entry