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Inventory and the Accounting equation

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

A credit sale of inventory will

a)

Increase Assets and Increase A/C Receivable

b)

Decrease Assets and Decrease A/C Receivable

c)

Increase GST Payable

d)

None of the Above

2.

A cash sale of Inventory will

a)

Decrease Inventory and Increase Bank and Decrease GST

b)

Increase Assets; Increase Liabilities and Owners Equity

c)

Increase Inventory and Decrease Bank and Increase GST

d)

Increase Owners equity

3.

Inventory Loss will

a)

Increase assets, decrease liabilities and decrease Owners Equity

b)

Increase assets, increase liabilities and decrease Owners Equity

c)

Decrease assets, and decrease Owners Equity

d)

Decrease assets, decrease liabilities and decrease Owners Equity

4.

A purchase return will

a)

Increase Inventory and Decrease Accounts Payable and GST

b)

Decrease Inventory and Decrease Accounts Payable and GST

c)

Decrease Inventory and Decrease Accounts Payable and Increase GST

d)

Increase Inventory and Increase Accounts Payable and Decrease GST

5.

A credit purchase of inventory will

a)

Decrease Inventory and Decrease Accounts Payable and Increase GST

b)

Increase Inventory and Decrease Accounts Payable and Increase GST

c)

Increase Inventory and Increase Accounts Payable and Increase GST

d)

Increase Inventory and Increase Accounts Payable and Decrease GST

6.

A donation of inventory will

a)

Increase Inventory and Increase Owners equity

b)

Decrease Inventory and Decrease Bank

c)

Decrease Inventory and Decrease Net Profit

d)

Decrease Inventory and Increase Net Profit

7.

A sales return of inventory will

a)

Decrease Inventory and decrease Bank and GST

b)

Decrease Inventory, decrease Accounts Receivable and decrease GST

c)

Decrease Inventory, decrease Accounts Payable and decrease GST

d)

Increase Inventory, decrease Accounts Receivable, decrease GST and decrease Owners Equity

8.

Drawings of inventory will

a)

Decrease Owners equity

b)

Decrease Bank and Owners Equity

c)

Decrease Inventory and Increase Owners equity

d)

Decrease Inventory and Decrease Owners equity

9.

An inventory Gain will

a)

Decrease Inventory and Increase Owners equity

b)

Increase Inventory and Increase Bank

c)

Increase Inventory and Increase Owners equity

d)

Decrease Inventory and Increase GST

10.

Do you love Accounting?

a)

Yes!

b)

Why not?!

c)

How would I say no!

d)

Oh god Accounting is my life!