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WorksheetsINTRODUCTION TO ACCOUNTS
Total questions: 65
Worksheet time: 35mins
Transactions and events that cannot be measured in money terms are not recorded in the books of accounts. It is due to Money Measurement Concept.
True
False
The system of recording transactions based on Dual Aspect Concept is known as (a) .
The proprietor is treated as a creditor to the extent of his capital according to:
(a) Cost Concept
(b) Business Entity Concept
(c) Going Concern Concept
(d) Materiality Concept
What is the type of Drawings Account?
(a) Personal
(b) Real
(c) Nominal
Expenses
In Accounting, Goods is defined as:
(a) Items which purchased for own consumption.
(b) Items which are purchased for charity.
(c) Items which are purchased for resale.
(d) Items without any defect.
Creditors are the (a) users of accounting.
Management is the (a) users of accounting.
Double entry system has two aspects_______and _________
(a)
Which system of accounting is more popular
Double entry system
single entry system
both a and b
none of these
All businesses are started with the aim of making ...
Capital
sound investments on the stock market
A profit
their owners popular
Book-keeping is the process of recording...
transactions in books of accounts or by using a computerized system
everything that takes place in a business.
money spent every day.
how much money is paid to workers.
Accounting is the process that involves
revealing how much money is in the bank
budgeting what will be spent only
reporting to stakeholders about potential profits
preparing/presenting, analysing and interpreting financial statements
Two common financial statements prepared are the
Trading and Profit and Loss Account and Balance Sheet
Balance Sheet and Suspense Account
Cash Book and Trading and Profit andLoss Account
Control Account and Balance Sheet
Sole Traders
do not ever employ others
are liable for all business losses/debts and benefit from all profits
are selfish and unable to get along with others
are primarily involved in street vending
Limited Companies
are owned by the government
can be private or public
are separate legal entities and can sue and be sued
limit the liability of shareholders to the same amount for each shareholder
What is a balance sheet?
A final account
A snapshot of the business' financial position of at a particular point in time.
It shows the business' assets, liabilities and capital
Customers that buy goods from us on credit are referred to as __________.
Debtors
Creditors
Customers
None of the above
When a business buys goods for resale (to be sold again), this transaction should be recorded in which f the following journal or book?
Sales Journal
Purchase Journal
Return Inwards Day Book
Return Outwards Day Book
Which of the following is an example of Real Accounts?
Building
Capital
Loans
Income
The business owner, Jack invested $9000 into the business bank account. What is the double entry to record this transaction?
Debit Bank and Credit Capital
Debit Capital and Credit Bank
Debit Capital and Credit Jack
Debit Jack and Credit Bank
Sold equipment by cash $700. What is the double entry to record this transaction?
Debit Cash and Credit Sales
Debit Cash and Credit Equipment
Debit Equipment and Credit Cash
Debit Sales and Credit Equipment
Bought a computer by cash $2500. What is the double entry to record this transaction?
Debit Computer and Credit Cash
Debit Cash and Credit Computer
Debit Cash and Credit Purchases
Debit Purchases and Credit Cash
Sold goods on credit to Mark. What is the double entry to record this transaction?
Debit Cash and Credit Sales
Debit Mark and Credit Sales
Debit Sales and Credit Mark
Debit Cash and Credit Sales
Bought goods worth $4000 on credit from Ben. What is the double entry to record this transaction?
Debit Purchases and Credit Cash
Debit Cash and Credit Purchases
Debit Ben and Credit Purchases
Debit Purchases and Credit Ben
Jack withdrew goods worth $500 from the business for his personal use. What is the double entry to record this transaction?
Debit Goods and Credit Jack
Debit Jack and Credit Drawings
Debit Drawings and Credt Purchases
Debit Purchases and Credit Drawings
Bought computers worth $3000 on credit from Computers Ltd. What is the double entry to record this transaction?
Debit Cash and Credit Computers
Debit Computers and Credit Cash
Debit Computers Ltd and Credit Computers
Debit Computers and Credit Computers Ltd
Sold old computers worth $1500 by cheque. What is the double entry to record this transaction?
Debit Computers and Credit Cash
Debit Computers and Credit Cheque
Debit Bank and Credit Computers
Debit Computers and Credit Bank
Mark returned goods worth $40 to the business. What is the double entry to record this transaction?
Debit Mark and Credit Sales Returns
Debit Sales Returns and Credit Mark
Debit Cash and Credit Mark
Debit Mark and Credit Cash
Returned goods worth $200 to Ben. What is the double entry to record this transaction?
Debit Ben and Credit Purchases Return
Debit Purchases Return and Credit Ben
Debit Cash and Credit Purchases Return
Debit Purchases Return and Credit Cash
Paid the wages for the month $400 by cheque. What is the double entry to record this transaction?
Debit Cheque and Credit Wages
Debit Wages and Credit Bank
Debit Wages and Credit Cheque
Debit Bank and Credit Wages
Rent received by cheque $500. What is the double entry to record this transaction?
Debit Rent and Credit Cheque
Debit Bank and Credit Rent received
Debit Cheque and Debit Rent
Debit Rent received and Credit Bank
Took $500 out of the bank and put it into the cash till.
Debit Cash/Credit Bank
Debit Bank/Credit Cash
Sold office machinery for cash
Debit Cash/Credit Office Machinery
Debit Office Machinery/Credit Cash
X buys goods on credit from Y. What is the name for the document used by X to settle the liability to Y?
Cheque
Credit note
Receipt
Statement of Account
In which book of account is cash discount received first recorded?
Sales ledger
Sales journal
Purchases journal
Cash book
Which account would always be a credited?
Return outwards
Carriage inwards
Bank
Cash
Paid the wages for the month $400 by cheque. What is the double entry to record this transaction?
Debit Cheque and Credit Wages
Debit Wages and Credit Bank
Debit Wages and Credit Cheque
Debit Bank and Credit Wages
A business is started with the injection of 10,000 in cash. In which account is the credit entry made?
Cash
Capital
A business purchases equipment cash. In which account is the debit entry made?
Equipment
Supplies
A business owner withdraws cash of 1,000 from the business. In which account is the debit entry made?
Drawings Account
Cash
A supplier is paid 500 by cheque, is the cash account debited or credited?
Credited
Debited
Is a bank loan an asset or a liability?
Asset
Liability
A __________ amount will appear on the left side of a T-account.
Debit
Credit
Assets which are purchased for the purpose of operating the business and not for resale are called
Current Assets
Fixed Assets
Liquid Assets
Fictitious Assets
The person who owes money to the firm is called a
creditor
lender
bank
debtor
An Enterprise to whom an entity owe, an amount for buying goods and services on credit is called
Creditor
Debtor
Lender
Bad debt
A liability arises because of _________. choose all possible correct answers.
Cash transaction
Paying immediately
Paying on later date
Credit transactions
Amount of debts irrecoverable from the debtors are termed as (a)
Purchase refers to purchase of......
Stationary for office use
Goods for resale
Assets for the factory
None of the above
(Revenues-Expenses = _______________)
Presenting financial information at cost and not in liquidating values in the view of continued existence of the business is the meaning of
Accrual basis of Accounting
Going-concern assumption
Separate entity assumption
Historic cost
Concept: The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period
Money Measurement
Matching Principle
Accounting Period
Full Disclosure
Concept: The same accounting procedures must be followed in the same way each accounting period
Going Concern
Consistency
Accounting Period
Conservatism
The concept of breaking the life of an enterprise into smaller periods to facilitate comparison is,
Cost Concept
Matching Concept
Accounting Period concept
Going concern concept
Fixed assets are shown in the books on the basis of
Inflated Cost
Market value
Realisable vale
Original cost
Name the convention that states closing stock is valued at cost price or market price which ever is lower.
Historic cost
Prudence
Full Disclosure
Accrual
Accounting should be free from the bias of accountants and others is stated by
Objectivity Concept
Full Disclosure Concept
Materiality concept
Conservatism
‘‘There should be complete and understandable reporting on the financial statements of all significant information relating to the economic affairs of the entity.’’ This statement describes the
Matching Principle
Full Disclosure Principle
Verifiable Objective Principle
Money Measurement Principle
