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Introduction to Accounting

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following statement is incorrect?

a)

Assets - Capital = Liabilities

b)

Liabilities + Capital= Assets

c)

Liabilities + Assets = Capital

d)

Assets - Liabilities = Capital

2.

Which of the following is not an asset?

a)

Buildings

b)

Cash Balance

c)

Debtors

d)

Loan from K. Abdul

3.

Which of the following is a liability?

a)

Machinery

b)

Creditors for goods

c)

Motor vehicles

d)

cash at bank

4.

Which of the following statements is correct?

a)

We paid a creditor by cheque ( - Bank - Accounts payable)

b)

A debtor paid us £90 in cash (+ Cash + Accounts receivable)

c)

J. Hall lends us £500 by cheque (+ Bank - Loan from Hall)

d)

Bought goods on time (+ Inventory + Capital)

5.

Given the following, what is the amount of Capital? Assets: Premises £20,000; Inventory £8,500; Cash £100. Liabilities: Accounts payable £3,000; Loan from A. Adams £4,000.

a)

£21,100

b)

£21,600

c)

£32,400

d)

£21,400

6.

Which of the following is correct?

a)

(I) and (II) only

b)

(I), (II) and (III) only

c)

(II), (III) and (IV) only

d)

(I), (II) and (IV) only

7.

What is the balance on the following account on 31 May 2017?

a)

A credit balance of £395

b)

A debit balance of £380

c)

A debit balance of £395

d)

There is a nil balance on the account

8.

What would have been the balance on the account of C. De Freitas in MC17 on 19 May 2017?

a)

A debit balance of £265

b)

A credit balance of £95

c)

A credit balance of £445

d)

A credit balance of £265

9.

Which of the following best describes a trial balance?

a)

It shows the financial position of a business

b)

It is a special account

c)

It shows all the entries in the books

d)

It is a list of balances on the books

10.

Is it true that the trial balance totals should agree?

a)

No, there are sometimes good reasons why they differ

b)

Yes, except where the trial balance is extracted at the year end

c)

Yes, always

d)

No, because it is not a statement of financial position