BEE-Accounts - MCQ Activity 1

How many accounts does each business transaction affect?

• One

• Two

• Three

• Four

Cash accounts record only ............. transactions.

• Bank

• Cash

• Credit

• Revenue

All accounts are kept in a book called the .............?

• Statement of financial position

• Income statement

• Ledger

• Trial balance

Money needed to start a business is called ............. .

• Revenue

• Purchases

• Rent

• Capital

Which one of the following appears in the credit column of a trial balance?

• Furniture

• Advertising

• Wages

• Revenue

Which one of the following is a current asset?

•  Machinery

• Motor Van

• Trade receivable

• Furniture

How is Cash Sales recorded?

• Dr Cash a/c

  Cr Sales a/c

• Dr Sales a/c

  Cr Cash a/c

• Dr Purchases a/c

  Cr Cash a/c

• Dr Cash a/c

  Cr Purchases a/c

Which would appear in an income statement? 

• bank overdraft   

• Capital introduced

• Motor vehicle expenses   

• Trade Receivables

Which of the following is a non-current asset?

• 
• 
• 
• 

Why is a trial balance prepared?

• to calculate Profit for the year

• to check the amount of the owner’s capital

• to check the arithmetical accuracy of the double entry

• to find out how much is owed to Trade Payables