Simple Accounting for Retailers (Beginner)

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

• customer

• manager

• investor

• creditor

Which of the following is correct?

• asset = owner's equity

• liabilities = assets + owner's equity

• assets = liabilities + owner's equity

• owner's equity = liabilities + assets

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

• All above

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

• every business transaction brings at least two financial changes in business

• every debit entry has a corresponding credit entry

Which of the following normally have a debit balance?

• asset accounts

• equity or capital accounts

• liability accounts

• income or revenue accounts

According to modern approach, the accounts are classified as:

• asset accounts, liability accounts, capital accounts, withdrawal accounts, revenue accounts and expense account.

• asset accounts, liability accounts, sales accounts, and profit account.

• personal account, nominal accounts, revenue accounts, and expense accounts

• personal account, nominal accounts, real accounts, and valuation accounts