ACC11L18 Asset Acquisitions General Ledger Pre Lesson Quiz

Match the following contra accounts

• Vehicle purchased on credit

• Creditors Control

• Depreciation

• Vehicle purchased on credit

• Accumulated Depreciation

• Bank

• Equipment purchased (EFT)

• Depreciation

• Creditors Control

• Accumulated Depreciation

A vehicle purchased on monthly instalments will be posted as follows:

• Dr Vehicles/ Cr Bank

• Dr Bank / Cr Vehicles

• Dr Vehicles / Cr Creditors Control

• Dr Debtors Control / Cr Vehicles

Contra accounts will always amount to the same transaction value on the opposite side of the ledger

• True

• False

An asset purchased on credit will have the following effect on the Accounting Equation:

• Assets (+); Liability (+)

• Asset (+); Owner's Equity (+)

• Assets (+); Assets (-)

• Assets (+); Liabilities (-)

An asset purchased cash will result in:

• Assets (+); Owner's Equity (+)

• Assets (-); Liability (+)

• Assets (+); Owner's Equity (-)

• Assets (+) ; Assets (-)

Depreciation is recorded in which subsidiary journal?

• Cash Payments Journal

• Cash Receipts Journal

• Creditors Journal

• General Journal

An asset purchsed with no money owing will be recorded in which subsidiary journal?

• Debtors Journal

• Cash Payments Journal

• Cash Receipts Journal

• Creditors Journal

An owner may not include a personal vehicle in the books of the business due to which GAAP principle?

• Historical Cost Principle

• Business Entity Principle

• Going Conern Principle

• Prudence Principle

An asset is not classified as an expense due to which GAAP principle?

• Historical Cost Principle

• Going Concern Principle

• Matching Principle

• Materiality Principle

Contra Accounts are an implementation of which GAAP principle?

• Business Entity Principle

• Prudence Principle

• Double Entry Principle

• Going Concern Principle