Accounting Term 1

Medical Aid is an example of?

• Service

• Spending

• Product

• Receiving

Which of the following is an example of a long-term liability?

• Vehicle purchase

• Creditors Control

• Mortgage Loan

• Fixed Deposit

Which of the following is not an expense?

• Water & electricity

• Salaries

• Donations

• Equipment

A business owns assets to the value of R550 000 and has liabilities of R95 000. What is the Owner's Equity of the business?

• R455 000

• R645 000

• R550 0000

• R645 500

Received a cheque from Mr McCartney for R 2 700 for the rent of a part of the offices for March. Select the correct debit and credit:

• Debit: Rent expense

  Credit: Bank

• Debit: Bank

  Credit: Rent Income

• Debit: Rent Income

  Credit: Bank

• Debit: Bank

  Credit: Rent expense

The owner and the business are seen to be separate.

• Profit/loss

• Owner's Equity

• Entity Rule

• Capital contribution

These can be converted to cash easily and quickly

• Debtors Control

• Financial Assets

• Current Assets

• Fixed Assets

A rule that states we need to have two accounts recorded for every transaction.

• T- Accounts principle

• Accounting Equation

• Accounting rule

• Double entry principle

Paid for groceries using the company debit card.

• Debit: Drawings

  Credit: Bank

• Debit: Drawings

  Credit: Creditors Control

• Debit: Bank

  Credit: Drawings

• Debit: Creditors Control

  Credit: Drawings

The business bank account is an example of:

• A liability

• An asset

• Owner's Equity

• Capital & Drawings