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WorksheetsACCOUNTANCY PRACTICE QUIZ
Total questions: 25
Worksheet time: 25mins
The purpose of accounting is to....
communicate information to interested users so that they can make informed decisions
communicate financial and non-financial information to interested users so that they can make informed decisions
communicate non-financial information to interested users so that they can make informed decisions
An Asset is...
An asset is a resource currently owned and controlled by a business as a result of a past transaction
An asset is a resource owned by a business as a result of a past transaction
An asset is something that costs money
Which of the following is an example of an asset?
Vehicle
Electricity
Mortgage
A liability is...
obligation of a business as a result of a past transaction
Something a business has to pay because of a past event
current obligation of a business as a result of a past transaction
Which of the following is an example of a liability?
Loan
Building
Sales
Accounts receivable
An Expense is...
An expense is defined as a decrease in assets which can be a distribution to the owner
An expense is defined as an increase in assets which can be a distribution to the owner
An expense is defined as a decrease in assets which is not a distribution to the owner
Which of the following is an example of an expense?
Machinery
Bank
Petrol
Which of the following is not a business transaction?
Bought furniture of ₹10,000 for business
Paid for salaries of employees ₹5,000
Paid son's fees from her personal bank account ₹20,000
Paid son's fees from the business ₹2,000
All of the following are functions of Accounting except
Decision making
Measurement
Forecasting
Ledger posting
Book keeping is mainly concerned with
Recording of financial data
Designing the systems in recording, classifying, and summarizing the recorded data
Interpreting the data for internal and external users
None of the above
Users of accounting information include
Creditors
Lenders
Customers
All of the above
Which of the following is the example of internal users
Government
Investors
Creditors
Employees
The process of identify, classify, recording and communicating business transaction is called as book-keeping.
True
False
Summary of assets and liabilities
Profit and loss account
Balance Sheet
Trading acccont
Income and expenditure account
Accounting is referred to as the "language of ___________________."
Profit
Life
Accounting
Business
The starting point of the accounting process is
communicating information to users.
identifying economic events.
recording economic events.
None of these answers are correct.
Insurance paid in advance by a business unit is
Asset
Liability
Loss
Capital
Goodwill is a
Tangible assets
Liquid assets
Intangible assets
Intangible Liabilities
Assets =
Capital -liabilities
Capital + liabilities
Capital -depreciation
liabilities -Profit
Bank overdraft is a
Current liability
Fixed liability
Current assets
Fixed assets
Double entry in accounting means there must be________ entries for every transaction?
two
Three
six
one
Equipment are an example of an/a ______?
loan
asset
liability
owners equity
Anything of value that is owned
account
asset
withdrawal
expense
