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POA - 4th

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following statements is incorrect?

a)

Asset + Capital = Liabilities

b)

Capital = Assets - Liabilities

c)

Liabilities + Capital = Assets

d)

Liabilities = Assets - Capital

2.

Which of the following is not an sset?

a)

Cash at bank

b)

Premises

c)

Stock

d)

Creditors

3.

Which of the following is a liability?

a)

Buildings

b)

Debtors

c)

Loan from J. Henry

d)

Equipment

4.

Which of the following is incorrect?

a)

Asset Liability Capital

$18270 $5,290 $12,980

b)

Asset Liability Capital

$ 9,340 $3,120 $6,220

c)

Asset Liability Capital

$15,160 $6,380 $7,780

d)

Asset Liability Capital

$12,230 $1,390 $10,840

5.

Which of the following best describes the meaning of 'Sales'?

a)

Items sold for cash or on credit

b)

Assets sold on credit

c)

The items bought previously

d)

Sale of items previously included in 'Purchases'

6.

Which of the following should not be called 'Purchases'?

a)

Purchase of a motor van for use by a business

b)

Goods bought on credit

c)

Goods bought for cash

d)

Items bought for the prime purpose of resale

7.

Which of the following is correct?

a)

Capital is reduced by loss

b)

Profit does not affect capital

c)

If there is no profit there is no capital

d)

A loan received will reduce capital

8.

Which of the following best describes a trial balance?

a)

Is the final account in the books

b)

Shows all the asset balances

c)

Is a list of balances on the books

d)

Discloses the financial position of a business

9.

When should the trial balance totals differ?

a)

Only when it is drawn up by an accountant

b)

When drawn up before the profit and loss account is prepared

c)

If drawn up halfway through the financial year

d)

Never

10.

The trading and profit and loss can be done using ____ formats.

a)

1

b)

3

c)

2

d)

4