Accounting basics

The sale of goods on credit would be recorded as

• Dr Creditor, Cr Sales

• Dr Goods, Cr Creditor

• Dr Debtor, Cr Sales

All of the following are classes of accounts except

• Nominal

• Impersonal

• Real

Which of the following groups represents Current Assets?

• Stock, Debtors, Creditors

• Bank overdraft, Cash, Stock

• Bank, Cash, Receivables

A bank account has a Dr bal b/d of $100, this means

• The bank account starts the next period with $100

• The bank account has an overdraft of $100

• The bank account is decreasing by $100

The owner withdraws goods for personal use, this will affect which two accounts?

• Drawings and Cash

• Drawings and Purchases

• Drawings and Stock

Mr. Jones purchased goods on credit from A J Limited, A J Limited is a

• Creditor

• Debtor

• Owner

The withdrawal of cash for personal use by the owner should be recorded as

• Dr Bank, Cr Cash

• Dr Owner, Cr cash

• Dr Drawings, Cr Cash

All of the following are steps in accounting except

• Recording

• Creating trial balance

• Preparing a bank reconciliation statement

Rent has a Dr record of $500, Cash has a Cr record of $500, which statement is true

• Rent expense of $500 was paid in cash

• Cash increased by $500

• Rent expenses decreased by $500

Bought a machine from Bumper Sales Ltd paying by cash. The double entry is

• Dr Machine, Cr Bumper Sales

• Dr Bumper Sales, Cr Cash

• Dr Machine, Cr Cash