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Worksheets3RD FORM BUSINESS BASICS TEST
Total questions: 30
Worksheet time: 30mins
The following are reasons to establish a business EXCEPT:
To be one's own boss
To share profit
To meet consumer's needs
All of the following are functions of a business EXCEPT:
To pay taxes
To satisfy the needs and wants of consumers.
To fire workers when the need arise
A ___________ making organization is a humanitarian organization that provides goods or services for the benefit of mankind.
Money
Non-profit
Profit
A _______ is formed when a group of persons using their resources to provide goods or services in order to make a profit.
Business
Venture
Profit
The function of the production department involves:
Sales promotion
Warehousing of finished goods
Recruiting and selecting suitable workers.
What type of business ownership is depicted in the picture?
Private limited company
Partnership
Sole trader
In a partnership more capital is put into the business.
TRUE
FALSE
A partnership and a sole trader has unlimited liability.
TRUE
FALSE
Shares in a private limited company can be sold to the general public.
TRUE
FALSE
A company is a legal entity.
TRUE
FALSE
The following are true about partnership EXCEPT:
The business will come to an end if something happens to a partner.
Better decision making
Specialization in the business activity by partners
The information on the amount of tax a business is able to contribute is linked to which user of accounting information?
Owner
Creditors
Government
_______ is an example of external users of accounting information.
Employee
Creditors
Owners
__________ is defined as collecting, organizing, reporting and interpreting information.
Principles of accounting
Accounting
Book keeping
___________ is involved in an exchange between two persons or a business entity and another party.
Accounting
Book keeping
Transaction
________ is define as a concept that guide accountants when preparing financial statements.
Principles of accounts
Book keeping
Accounting
Luca Pacioli showed that at least two records or accounts must be opened to show the matching change in a transaction. This is called:
Book keeping
Double entry system
Transaction
Peter purchased an iPhone 11 for $50,000 cash. What are the two accounts affected in this transaction.
Peter, Cash
iPhone 11, cash
Peter, iPhone 11
The right hand side of an account represents?
Debit
Double entry
Credit
For every debit entry there is a corresponding credit entry
TRUE
FALSE
The following is an example of which category of accounting?
Liabilities
Assets
Revenue
To show an increase in Capital, you:
Credit
Debit
Non of the above
Liabilities are what the business owns.
TRUE
FALSE
Identify the items that are true about the examples of current assets.
Land, Equipment, Furniture
Investment, Land, Cash in bank
Stock, Debtors, Cash in hand
The image is an example of?
Tangible current asset
Intangible current asset
Non of the above
A decrease in expense "rent" shows what type of entry?
Debit
Credit
Non on the above
Assets that are kept in business for more than a year are called non-current asset.
TRUE
FALSE
The accounts department is responsible for the pricing of the products.
TRUE
FALSE
A business organization with 2-50 members is:
Partnership
Private limited company
None of the above
Mr. Jackson who owes the business $5,000 would be classified as a:
Creditors
Debtors
Assets
