11 Accounting Quiz 2

Which of the following items is not an asset?

• A loan from the bank

• Inventories

• Furniture

• Investments

Which of the following items is not a liability?

• A loan from the bank

• Bank overdraft

• Accounts payable

• Accounts receivable

Which of the following equations is incorrect?

• L = A - OE

• OE = A - L

• A = L + OE

• L = A + OE

You are given the following items and asked to find the value of the missing item Accounts Receivable.

Equipment $3000; Cash at Bank $1000; Capital $5000; Accounts Payable $500; Inventories $750. What is the value of the Accounts Receivable?

• $7 750

• $10 250

• $750

• none of the options

The only transaction that occurred on 1 July 2026 was that the owner introduced $3 000 worth of supplies and $10 000 cash into the business. Which of the following statements is correct?

• On 1 July 2026 the value of capital is $61000

• On 1 July 2026 the value of the truck is $20 000

• On 1 July 2026 the value of cash at bank is $65000

• On 1 July 2026 the value of the loan from Finance Co is $33000

Which of the following statements is incorrect?

• A sole trader cannot raise money from the public.

• The payment of tax by a sole trader appears as an expense in the SOPL

• A company is regarded as a separate accounting entity and a separate legal entity.

• A sole trader is not regarded as a separate legal entity but is regarded as a separate accounting entity.

Consider the transaction: bought furniture on credit from Furniture Solutions Pty Ltd for $50000. Which of the following statements is correct?

• This transaction affects the SOCF and SOPL

• This transaction affects the SOPL and SOFP

• This transaction affects the SOCF and SOFP

• None of the options

Consider the transaction: Received cash of $5000 from A Brusenov, a customer. Which of the following statements s correct?

• This transaction affects the SOCF & SOPL

• This transaction affects the SOPL & SOFP

• This transaction affects the SOCF & SOFP

• None of the options

Which of the following statements is incorrect?

• If an owner contributes additional cash of $100000 into the business, this will appear as an operating activity in the SOCF

• If a company pays interest of $100000, this will appear in the SOPL, whereas if the business is a sole trader, it will not appear in the SOPL

• If a business made a profit of $100000, the the Cash at Bank account would increase

• All of the options

Which statement is incorrect?

• All liabilities arise from a cash inflow

• All revenues arise from a cash inflow

• All owner's equity items arise from a cash inflow

• All of the options