FOA Recording Financial Transactions

Assets, liabilities and equity are fundamental elements of accounting

• True

• False

An increase in an asset results in a credit to the asset account

• True

• False

An increase in a liability results in a credit to the liability account.

• True

• False

There are two types of inventory systems for recording the movement of inventories

• True

• False

Identify the three broad categories of accounts.

• Nominal Accounts

• Internal Accounts

• Personal Accounts

• Real Accounts

A journal is considered to be a book of original entry

• True

• False

Based on the following transaction, identify the accounts that would be affected by: Started a business with Motor Van

• Motor Van, Cash

• Motor Van, Capital

• Motor Van, Bank

• Motor Van, Loan

Based on the following transaction, identify the accounts that would be affected by: Received loan from BICB, received a cheque

• Bank, Cash

• Loan, Cash

• Loan, Bank