S3 Accounts Introduction Quiz

What is the primary purpose of accounting in a business?

• To hire employees

• To keep track of all financial transactions

• To create advertisements

• To purchase inventory

Which of the following is NOT a type of business organization mentioned in the image on page 1?

• Sole Trader

• Cooperative

• Private Limited Companies

• Social Enterprise

What does a business record as sales?

• Money spent on inventory

• Money spent on wages

• Money received from customers

• Money spent on advertising

According to the image on page 1, which type of business organization aims not to make a profit but to serve the local community?

• Private Limited Companies

• National Government

• Non-profit making

• Sole Trader

What must a business pay for besides inventory?

• Only wages and rent

• Products, services, and advertising

• Only products and services

• Only advertising and postage

What is a sole trader in the context of business?

• A type of partnership

• A corporation

• A business owned and managed by one person

• A non-profit organization

What is another term for the money invested in a sole trader business?

• Debt

• Liability

• Equity

• Expense

Which of the following is an advantage of being a sole trader?

• Unlimited liability

• Need to work long hours

• Complete control over decisions

• Difficulty in getting money for expansion

What is a potential disadvantage of being a sole trader?

• Easy setup

• Keeping all the profits

• Having unlimited liability

• No need for accountants

What is the term used to describe the money that a sole trader invests in their business when setting it up?

• Debt

• Equity

• Loan

• Grant