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Introduction to Accounts

Total questions: 30

Worksheet time: 48mins

Name
Class
Date
1.

Which one of the following is NOT a reason for the use of accounting in business?

a)

Going on a vacation

b)

Measure of wealth

c)

Assist in decision making

d)

Invest in start-up of a business

2.

All of the following are users of accounting information of a business EXCEPT _______

a)

Owners

b)

Government

c)

Potential Investors

d)

Teachers

3.

A document which shows a business’ financial position at any point in time best describes a ________

a)

Ledger

b)

Income Statement

c)

Balance Sheet

d)

Cash Flow Statement

4.

Debts that do not have to be repaid within one year are referred to as ________

a)

Fixed Assets

b)

Current Liabilities

c)

Current Assets

d)

Long-term Liabilities

5.

People who the business owes for goods taken on credit are called _______

a)

Debtors

b)

Owners

c)

Creditors

d)

Bankers

6.

Which one of the following best represents the accounting equation?

a)

Assets = Liabilities – Capital

b)

Assets = Capital + Liabilities

c)

Capital = Assets + Liabilities

d)

Liabilities = Capital – Assets

7.

All of the following are assets EXCEPT _______

a)

Office Machinery

b)

Capital

c)

Furniture and Fittings

d)

Cash at bank

8.

Which one of the following is a liability?

a)

Debtors

b)

Vehicles

c)

Bank Loan

d)

Buildings

9.

The cost of operating an organization is best described as ______

a)

Income

b)

Debts

c)

Expenses

d)

Liabilities

10.

1. Money earned for a service provided is known as ______

a)

Income

b)

Debt

c)

Expense

d)

Liability

11.

Money earned in excess of what was spent to earn it is called ______

a)

Net Income

b)

Net Expenses

c)

Net Pay

d)

Gross Pay

12.

Money earned for time worked in excess of normal working hours is considered ______

a)

Net Pay

b)

Overtime Pay

c)

Salary

d)

Gross Pay

13.

Extra money received in addition to the salary is known as ______

a)

Commissions

b)

Wages

c)

Salary

d)

Bonus

14.

When payment is received for each item produced, this is known as ______

a)

Commissions

b)

Bonus

c)

Piece-rate Basis

d)

Time-rate Basis

15.

Which type of job is most likely to be paid on a time-rate basis?

a)

Security

b)

Medical Doctor

c)

Secretary

d)

Teacher

16.

A list of employees and the amount of money they are paid refers to ______

a)

Payslip

b)

Time Sheet

c)

Time Card

d)

Payroll Register

17.

Gross pay is also known as ______

a)

net pay

b)

disposable income

c)

total pay

d)

take-home pay

18.

Which one of the following is an example of a mandatory deduction?

a)

Credit union fees

b)

Loan payments

c)

Pension

d)

Income tax

19.

______ is NOT an example of a voluntary deduction.

a)

Union Dues

b)

Sousou

c)

Loan

d)

NIC

20.

Which of the following is NOT an example of a deduction?

a)

Pension

b)

PAYE

c)

NIC

d)

VAT

21.

Krazy Kandy started a business selling candies. Before he starts to trade, he buys a machine

$15 000, equipment $3 500 and stock $4 200. He still owes $1 000 for stock. Max Bank gave him a loan of $2 000. After the above transactions, he has $500 cash at bank.


What is the total value of his assets?

(a)  

22.

Krazy Kandy started a business selling candies. Before he starts to trade, he buys a machine

$15 000, equipment $3 500 and stock $4 200. He still owes $1 000 for stock. Max Bank gave him a loan of $2 000. After the above transactions, he has $500 cash at bank.


What is the value of his capital?

(a)  

23.

Zoey works for a regular week of 40 hours at $10 per hour. Overtime is paid at time and a half. Last week, Zoey worked a total of 47 hours.


Her deductions are: NIC - 5% of Gross Pay and PAYE - 10% of Gross Pay.


What is the value of her overtime pay?

(a)  

24.

Zoey works for a regular week of 40 hours at $10 per hour. Overtime is paid at time and a half. Last week, Zoey worked a total of 47 hours.


Her deductions are: NIC - 5% of Gross Pay and PAYE - 10% of Gross Pay.


What is the value of regular pay?

(a)  

25.

Zoey works for a regular week of 40 hours at $10 per hour. Overtime is paid at time and a half. Last week, Zoey worked a total of 47 hours.

Her deductions are: NIC - 5% of Gross Pay and PAYE - 10% of Gross Pay.


What is the value of total deductions?

(a)  

26.

Joy works for $24 per regular hour and time and a third per overtime hour. She worked for 6 overtime hours.


What is the overtime rate?

(a)  

27.

Joy works for $24 per regular hour and time and a third per overtime hour. She worked for 6 overtime hours.


What is the overtime pay?

(a)  

28.

If Assets = $12 000 and Liability = $2 800, then Capital = $8 200.


Is this statement TRUE or FALSE?

a)

TRUE

b)

FALSE

29.

Jilli has the following information in her books: Loan $2 000, Stock $3 500, Creditors $1 000, Bank $4 000, Cash $250 and Fixtures $6 000. What is the value of her Capital?

(a)  

30.

Zabs has the following information for his business: Computers $1 700, Security Cameras $2 000, Cash at bank $5 450, Cash in hand $975, Creditors $2 650, Capital $5 470 and a Loan. He cannot remember his loan balance.


What is the value of his loan?

(a)