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DIPACC Competition 13 November 2022

Total questions: 25

Worksheet time: 27mins

Name
Class
Date
1.
The listing of all of the accounts available for use in a company's accounting system is known as the __________.
a)

Chart of Accounts

b)

Journal

c)

Ledger

d)

Credit Ledger

2.

Income can be defined as _______

a)

cost of operating a business.

b)

money earned from operating a business.

c)

cost of buying new equipment.

d)

capital for a business

3.

Expenses can be defined as ________

a)

the cost of operating a business.

b)

money earned when operating a business.

c)

cost of buying new equipment for a business.

d)

money invested in the business

4.

What is net profit?

a)

assets - liabilities

b)

revenue - cost of goods

c)

revenue - cost of goods sold - expenses

d)

income - profit

5.

Salaries and wages is an __________?

a)

equity

b)

asset

c)

expense

d)

income

6.

Revenues minus Cost of Goods Sold equals:

a)

Assets

b)

Expenses

c)

Income

d)

Gross Profit

7.
The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:
a)

Balance Sheet

b)

Income Statement

c)

Statement of Cash Flows

d)

Trial balance

8.

Resources owned by a company (such as cash, accounts receivable, buildings) are referred to as __________.

a)

Assets

b)

Liabilities

c)

Owner Equity

d)

Expenses

9.

Obligations (amounts owed) by the company to creditors are referred to as __________.

a)

Assets

b)

Liabilities

c)

Revenue

d)

Equity

10.

Cash or other items that can be converted into cash quickly

a)

fixed assets

b)

current liabilities

c)

expenses

d)

current assets

11.

What type of account is Accounts Payable?

a)

Asset

b)

Expense

c)

Owner's Equity

d)

Liability

12.

Gym equipment is an example of a ______?

a)

current asset

b)

fixed asset

c)

fixed liability

d)

owners equity

13.

When the owner takes money out from the business account for personal use it is called

a)

Drawings

b)

Capital

c)

Investment

d)

Shares

14.

The financial statement that reports the assets, liabilities, and owner's equity at a specific date is the:

a)

Balance Sheet

b)

Income Statement

c)

Statement of Cash Flows

d)

Statement of Equity

15.

What type of account is a Government business loan?

a)

Current Asset

b)

Fixed Liability

c)

Owner's Equity

d)

Fixed Asset

16.

An example of an internal user for financial statements

a)

Supplier

b)

Customer

c)

Financial accountant

d)

Investor

17.
Accrual concept is based on :
a)

matching principle

b)

dual aspect principle

c)

cost principle

d)

going concern concept

18.

Double entry in accounting means there must be________ entries for every transaction?

a)

two

b)

four

c)

six

d)

one

19.

Assets increase on the ________ side?

a)

subsidiary

b)

T-account

c)

credit

d)

debit

20.

Income increases on the _______ side?

a)

debit

b)

two

c)

credit

d)

sixth

21.

Mrs. Alqatani bought SR200 in stationary and she paid with a debit card. Which of the following would be correct?

a)

Dr Equity; Cr Expenses

b)

Dr Expenses; Cr Liabilities

c)

Dr Assets; Cr Liabilities

d)

Dr Expenses; Cr Assets

22.

The accounting equation is

Assets - Liabilities = Equity

a)

TRUE

b)

FALSE

23.

Assets are SR50,000. Liabilities are SR20,000. What is Owner's Equity?

a)

SR30,000

b)

SR70,000

c)

SR0

d)

-SR30,000

24.

The current ratio measures the _____ of the company

a)

performance

b)

liquidity

c)

profitability

d)

solvency

25.

Which of the following is NOT a benefit of using technology in the accounting process?

a)

It allows accounting work to be done quickly and accurately.

b)

Documents can be generated automatically.

c)

Cost of installation is very high.

d)

There is quick updating of information.