Accounting Basics

Jenny bought goods on credit from Shalini for $250

• Dt Purchases

  Ct Jenny

• Dt Purchases

  Ct Shalini

• Dt Purchases

  Ct Sales

• Dt Jenny

  Ct Purchases

Discount allowed is given by the seller to the buyer

• True

• False

Which of the following is NOT an expense?

• Commission received

• Wages

• Insurance

• Utilities

Capital is the owner's investment in his/her own business

• True

• False

Which of the following is an asset?

• Loan

• Trade Payable

• Capital

• Cash in bank

Discount received is an income for the business

• True

• False

Which of the following is an expense?

• Sales

• Commission received

• Administrative expenses

• Inventory

Chen Kai returned goods to his supplier Gavy for $200

• Dt Purchases

  Ct Gavy

• Dt Sales

  Ct Chen Kai

• Dt Gavy

  Ct Purchases Returns

• Dt Gavy

  Ct Sales Returns

Min Yee bought goods by cheque for $400

• Dt Purchases

  Ct Bank

• Dt Sales

  Ct Bank

• Dt Inventory

  Ct Cash

• Dt Min Yee

  Ct Bank

Which of the following best describes a liabiliti?

• An amount owing to a third party by the business

• An amount a third party owed to the business

• An amount that can bring future benefits to the business