WorksheetsCHAPTER 1- 3 ACCOUNTING FOR SERVICE INDUSTRY
Total questions: 12
Worksheet time: 12mins
Which of the following is non-current liability?
Bank
Cash
Builidngs
Long-term loan
Which of the following is a current asset?
Machinery.
Cash at bank.
Motor vehicles.
Account payable for goods.
Which of the following statements about users of accounting information is correct?
Management is considered as external users.
Present creditors are considered as internal users.
Taxing authorities are considered as external users.
Regulatory authorities are considered as internal users.
If we take goods for own use we should:
Debit sales account, Credit inventory account
Debit drawings account, Credit inventory account.
Debit drawings account, Credit purchases account.
Debit purchases account, Credit drawings account.
In a double entry system, a debit is used to record:
Decrease in asset, and increase in capital, revenue and expense
Increase in asset and expense, and decrease in liability, revenue and capital.
Increase in asset and revenue, and decrease in liability, expense and capital.
Decrease in asset and capital, and decrease in liability, revenue, and expense.
The journal is__________.
a supplement to the cash book
part of the double entry system
not part of the double entry system
used when other journals have been mislaid
Which of the following describes a trial balance?
It is a special account
It is a list of balances on the books
It shows all the entries in the books
It shows the financial position of a business
Which of the following equations properly represents a derivation of the fundamental accounting equation?
Capital = Assets - Liabilities.
Assets = Liabilities – Capital.
Liabilities = Assets X Capital.
Capital = Assets + Liabilities
Which of these items would be accounted for as an expense?
Rent received
Discount allowed
Discount received
Commission received
In the double entry rules, all decreases in assets, expenses, and drawings are recorded in__________.
Debit (left) side of the account
Credit (left) side of the account
Debit (right) side of the account
Credit (right) side of the account
Which of the following correctly states the liability of the company’s business?
Limited liability
Current liability
Unlimited liability
Non-current liability
Which of the following can be classified as an intangible asset?
Bank
Cash
Inventory
Patent and trademark
