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WorksheetsAccounting Basics
Total questions: 25
Worksheet time: 33mins
1. Book-keeping is___________
collecting books in a library
a statement of assets and liabilities
recording business transactions
recording the figures on a bank
statement
The accounting cycle is____________
(i) the method of transport used for staff to come to work
(ii) the steps taken to produce a set of accounts
(iii) the period for which the business produces its
accounts
(iv) the organisation’s tax year
(i) and (ii) only
(iii) and (iv) only
(ii) and (iii) only
(i) and (iv) only
Which one of the following is NOT a source document?
debit note
journal
invoice
petty cash voucher
An invoice must include ___________
(i) the seller’s name and address
(ii) the seller’s date of birth
(iii) the purchaser’s telephone number
(iv) a description of the goods or services supplied
(i) and (ii) only
(ii) and (iv) only
(i) and (iii) only
(i) and (iv) only
The accounting equation may be expressed as ________
Liabilities = Assets + Capital
Capital = Assets + Liabilities
Assets = Capital - Liabilities
Liabilities = Assets - Capital
Which one of the following is NOT an asset?
cash at bank
government grants
accounts receivable
investment in other firms
Which one of the following is a liability?
accounts payable
interest from bank
accounts receivable
investment in other firms
Which one of the following is correct?
capital is reduced by a loss
profit does not affect capital
a loan received will reduce capital
if there is no profit there is no capital
Which of the following is INCORRECT?
(i) and (ii) only
(i) and (iv) only
(ii) and (iii) only
(ii) and (iv) only
Shane J. has the following information in his books.
Investments $20 000, Inventory $13 210, Accounts receivable $5 600, Bank $900, Accounts payable $4 200, Vehicles $13 000, Fixtures $17 500.
What is the value of current assets?
$19 710
$23 910
$50 500
$70 210
Shane J. has the following information in his books.
Investments $20 000, Inventory $13 210, Accounts receivable $5 600, Bank $900, Accounts payable $4 200, Vehicles $13 000, Fixtures $17 500.
What is the value of fixed assets?
$19 710
$50 500
$23 910
$70 210
A machine sold on credit to Ray should be recorded in the T-accounts as _______
Dr Ray Cr Machine
Dr Cash Cr Ray
Dr Machine Cr Ray
Dr Machine Cr Cash
A sales invoice is issued when there is a ________
Cash sale to a customer
Credit sale to customer
Cash purchase from supplier
Credit purchase from supplier
A debit note is ________
sent to customer confirming return of goods
sent to supplier requesting the return of goods
received from customer requesting return of goods
received from supplier confirming request for return of goods
A credit note is ________
sent to customer confirming return of goods
sent to supplier requesting the return of goods
received from customer requesting return of goods
received from supplier confirming request for return of goods
Information from a debit note is recorded in the ________
returns inwards journal
returns inwards account
returns outwards journal
returns outwards account
Information from a credit note is recorded in the ________
returns inwards journal
returns inwards account
returns outwards journal
returns outwards account
What amount would be recorded in the day book?
$55
$495
$500
$550
In which day book will Rollo’s Garage record this transaction?
Sales Day Book
Purchases Day Book
Returns Inwards Day Book
Returns Outwards Day Book
In which day book will S. Peterson record this transaction?
Sales Day Book
Purchases Day Book
Returns Inwards Day Book
Returns Outwards Day Book
What transaction is recorded in the accounts above?
Sale of machine on cash to Docs. Inc.
Purchase of machine on credit from Docs. Inc.
Return of machine by Docs. Inc.
Return of machine to Docs. Inc.
Jayden provided you with the following information on his balance sheet.
Closing capital $65 400, opening capital $51 370 and drawings of $5 620.
What is the value of his Net Profit or Net Loss?
$8 410 loss
$8 410 profit
$19650 loss
$19 650 profit
Which of the following are INCORRECT?
(i) Bought equipment on credit from C. Lee
Dr Equipment Cr C. Lee
ii) Introduced extra capital in cash
Dr Capital Cr Cash
iii) Paid a creditor, C. Brown, by cheque
Dr C. Brown Cr Bank
iv) F. Grant lent us $1 000 in cash
Dr F. Grant: Loan Cr Cash
(ii) and (iv) only
(ii) and (iii) only
(i) and (iii) only
(iii) and (iv) only
Which of the following are CORRECT?
i) Returned some equipment to C. Lee
Dr Equipment Cr C. Lee
ii) Sold office fixtures for cash
Dr Cash Cr Office Fixtures
iii) Repaid loan from F. Grant by cheque
Dr Bank Cr F. Grant - Loan
iv) Bought van on credit from Sunset Motas
Dr Van Cr Sunset Motas
(i) and (iv) only
(i) and (iii) only
(ii) and (iii) only
(ii) and (iv) only
The cash book is used to record ________
credit sales only
credit purchases only
cash transactions only
none of the above
