Accounting Grade 12 Revision Quiz

Which of the following reflects the effect on the accounting equation of the following purchase:

Purchased a Bulldozer for R500 000 cash

• Asset increases, Equity decreases

• Asset decreases, Equity increases

• Asset decreases, Equity unchanged

• Asset unchanged, Equity unchanged,

A credit entry could lead to:

• Decrease in asset

• Increase in a Liability

• Increase in Capital account

• All of the above

An Income statement is:

• A listing of the account balances in a ledger account

• A statement showing the financial position of a person or business

• A financial statement that summarizes the items of revenue and expenses, and shows the net income or net loss of the business

• All of the above

The fundamental accounting equation is expressed as:

• Assets - Liabilitiy = Equity

• Assets = Liability + Equity

• Assets = Liability - Equity

• Equity = Assets = Liability

Equity is BEST described as:

• The difference between the total assets and total liabilities

• A portion of total assets that has been bought using the owner's money

• The amount of inventory bought using the owner's money

• None of the above

Assets are generally listed on the balance sheet in the order of their Liquidity.

Liquidity means:

• The order in which the assets are converted into cash

• Their Rand value, which is the highest value lisred first

• Their Rand value with the lowest value first

• None of the above

Which of the following reflects the effect on the accounting equation of a payment made to creditors

• Assets decrease, Equity decreases

• Assets decrease, Equity increases

• Assets decrease, Liability increases

• Assets decrease, Liability decreases

Which of the following is not a feature of the Balance sheet

• Assets

• Expenses

• Equity

• Liabilities

Which of the following is not a liability

• Mortgage on Building

• Bank loan on truck

• Accounts Receivable

• Accounts Payable

The Trial balance for a business is:

• Another name for a balance sheet

• A list of account balances in a ledger to see if debits equal credits

• A statement showing profit for the fiscal year

• A check on the bank account