WorksheetsChapter 1 Introduction to accounting
Total questions: 15
Worksheet time: 8mins
Write the equation to show the relationship between assets, liability and owners equity
Resources owned by a company (such as cash, trade receivables, vehicles) are reported on the statement of financial position and are referred to as __________.
Liabilities
Assets
Income
Owner's Equity
Obligations (amounts owed) are reported on the statement of financial position and are referred to as __________.
Assets
Liabilities
Equity
Debt
How many accounts, at a minimum, are required for accounting entries?
1
2
3
4
Identify two causes of failure in a business
Which of the following are assets?
Bank account
Vehicles
Bank overdraft
Furniture
Credit card
If I invest $2000 in my own business this causes:
An increase of $2,000 in equity column
An increase in Income column of $2,000
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
The process of identify, classify, recording and communicating business transaction is called as book-keeping.
True
False
Accounting is referred to as the "language of ___________________."
Profit
Life
Accounting
Business
Which of the following is not an asset?
Buildings
Cash Balance
Debtors
Loan from K. Abdul
Which of the following is a liability?
Machinery
Credit suppliers for goods
Motor vehicles
cash at bank
Which of the following statements is correct?
We paid a supplier by cheque ( - Bank - Trade payables)
A debtor paid us $90 in cash (+ Cash + Trade receivables)
J. Hall lends us $500 by cheque (+ Bank - Loan from Hall)
Bought goods on time (+ Inventory + Capital)
Given the following, what is the amount of Capital? Premises $20,000; Inventory $8,500; Cash $100, Trade payables $3,000; Loan from A. Adams $4,000.
$21,100
$21,600
$32,400
$21,400
Said, a retailer, purchased goods, $400, from a wholesaler and paid in cash. How did this affect Said's total assets and total liabilities?
Total assets and total liabilities increase by $400.
Total assets increase by $400 and no effect on total liabilities.
No effect on total assets and total liabilities increase by $400
No effect on total assets and total liabilities.
