Role of accounting - Quiz

What is the Accounting Equation?

• Asset = Liabilities + Capital

• Asset = Liabilities - Capital

• Liabilities = Assets + Capital

• Capital = Asset + Liabilities

Which of the following group contains only Assets?

• Land, Trade payables, Trade receivables

• Bank, Cash, Bank overdraft

• Cash, Bank, Vehicle

• Bank overdraft, Trade payables, cash

Which of the following is an asset?

• Loan from Ali

• Trade payables

• Bank overdraft

• Loan to Ahmed

Example of an asset is

• Money borrowed by the firm     

• Machinery owned by the firm    

• The capital of the firm

• Loan from J Bowen

Given the following, calculate the amount of capital.

Property $10000, Inventory $2000, Trade receivables $3100, Trade payable $2700.

• 11 600

• 6 200

• 12 000

• 12 400

What is the journal entry for:

Bought furniture paying by cash

• Dr Furniture

  Cr Cash

• Dr Cash

  Cr Furniture

• Dr Purchase

  Cr Cash

• Dr Cash

  Cr Purchase

What would a business use to pay for goods?

• Invoice

• Receipt

• Cheque

• Statement of account

A business buys goods on credit. Which document is used to record this in the buyer’s books?

• Credit note

• Cash invoice

• Purchase invoice

• Sales invoice

A business allows its customers cash discount. Where is this first recorded?

• Sales journal

• Cash book

• Ledger

• Purchase journal

What is recorded in general journal?

• Cash transactions

• Credit sales

• Credit purchases

• None of the above