Grade 9 Final Accounting Terminology Quiz

An amount that the enterprise owes another enterprise ...

• Asset

• Liability

• Expense

• Drawings

Each transaction that takes place must be recorded on a __________

• Ledger

• Source Document

• Bank Statement

• Transaction

Identify which of the following TWO are current assets:

• Trading Debtors

• Land

• Equipment

• Cash Float

Identify which of the two accounts are current liabilities:

• Loans

• Bank Overdraft

• Trading Creditors

• Mortgage on property

Owner's Equity =

• Capital - Drawings + Net Profit

• Capital + Drawings - Net Profit

• Net Profit - Capital - Drawings

• Net Profit + Capital + Drawings

The cost price of the trading stock already sold.

• Gross Profit

• Sales

• Cost of Sales

• Profit Mark- up

THE PRICE AT WHICH GOODS ARE SOLD TO CUSTOMERS

• THE COST PRICE

• THE GROSS PROFIT

• THE SELLING PRICE

GROSS PROFIT IS EQUAL TO:

• Selling Price + Cost Price

• Selling Price - Cost Price

• Selling Price - Gross Profit

• Selling Price - Cost Price - Gross Profit

A current asset is an asset with a relatively long life span, bought to use in the business over a long period and not used for resale purposes.

• TRUE

• FALSE

When making entries in the general ledger, for every debit there must be an equal and corresponding debit. What rule does this abide by.

• the business entity rule

• the principle of double entry

• the accounting equation

• the balance sheet rule