Accounts Intro and Cash Book

Which one of the following is not an external user of accounting information?

• Investor

• Creditor

• Manager

• Customer

Which of the following is correct?

• Owner’s Equity = Liabilities + Assets

• Liabilities = Assets + Owner’s Equity

• Assets = Liabilities + Owner’s Equity

• Assets = Owner’s Equity

Which of the following is correct about double entry system of accounting?

• Every business transaction brings at least two financial changes in business.

• Financial changes are recorded as debits or credits in two or more accounts.

• Every debit entry has a corresponding credit entry.

• All of the above

Which of the following normally have a debit balance?

• Liability accounts

• Equity or capital accounts

• Income or revenue accounts

• Asset accounts

Double entry in accounting means there must be________ entries for every transaction?

• two

• Three

• six

• one

A general Leger/T) has a ______ and _______ side.

• cash receipt and debtors

• debit and payments

• debit and credit

• creditors and debtors

Assets increase on the ________ side?

• subsidiary

• T-account

• credit

• debit

owners equity decreases on the _________ side?

• credit

• debit

• payments

• liability

Equipment are an example of an/a ______?

• loan

• asset

• liability

• owners equity

________ are debts of the business?

• assets

• liabilities

• owners equity

• vehicles