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WorksheetsBusiness Basics Review Quiz #1
Total questions: 35
Worksheet time: 26mins
Which of these is not included as a separate item in the basic accounting equation?
Assets
Revenue
Liabilities
Equity
Which is true about fixed assets?
They were not bought primarily to be sold
These are items that are likely to change in the short term
They are items that have to be paid within a year.
They are expenses which have been paid in advance
Which of the following is NOT true about bookkeeping?
Bookkeeping is primary stage
Work is performed by junior staff.
A book keeper can do the work of an accountant
Bookkeeper job is often routine and clerical
Which of the following users of accounts is internal?
Investors
Sales Staff
Customers
Government
A person who creates goods and services is called a:
Producer
Consumer
Business person
Trader
Another name for the accounting equation is:
Accounting Expression
Assets, liabilities and capital framework
Balance Sheet Equation
Income Statement
The liability arising from the purchase of goods or services on credit is called:
Debtors
Accounts payable
Loan
Accounts receivable
The statement which shows the financial position of a business at a particular date is termed as:
Financial statement
Income statement
Bank statement
Balance sheet
When a good is traded between countries it is called a:
Commodity
Loss
Profit
Good
Which of the following statements is false?
A liability is a debt for your business.
Debtors are owned by the business for a short time
The accounting equation shows how much of your assets belong to the owner, and how much ‘belong’ to people outside the business.
A loan is always considered a current liability
The properties owned by a business enterprise are called:
Capital
Liabilities
Assets
Owner's equity
Which of the following is TRUE about accounting?
The accountant's job is analytical in nature
The main activity is recording transactions in journals and ledgers
Work is performed by junior staff
Accounting is the primary stage
Which of the following is NOT a source document?
Debit Notes
Bank Statements
Receipts
Credit Transaction
A business has the following items in it:- Capital $600,000, Total liabilities $1,400,000- Assets ______?What is the value of the assets in this business?
$600,000
$800,000
$2,000,000
$1,400,000
Accounts receivable are considered as:
Income
Retained earnings
Current assets
Fixed assets
Cash invested by the owner is called:
Capital
Liabilities
Loan
Asset
Which of the following is NOT a liability
Accruals
Prepayments
Loan
Mortgage
Persons who own and operate their own business are called:
Executives
Operators
Manager
Entrepreneur
An intangible product is called
Good
Service
Commodity
Market
Which of the following is NOT a fixed asset:
Building
Prepayments
Machinery
Lorry
A bookkeeper may be describe as a person who
Maintains detailed records of all business transactions
Manages the financial aspects a business
Prepares financial statements of the business
Decides which accounting system is used by the business
Which of the following are functions of a book-keeper?
I. Analyzing
II. Interpreting
III. Posting
IV. Recording
II and III only
I, II and III only
I, II, III, and IV only
III and IV only
Which of the following groups indicates examples of current assets only?
Vehicles, equipment, machinery, typewriter
Debtors, stock, creditors, cash in hand
Stock, cash at bank, debtor, cash in hand
Bank overdraft, stock, cash, machinery
On January 1st, 2009 an entity's balance sheet showed total assets of $7,500 and liabilities of $2,500. Owners' equity at January 1st was?
$5,000
$10,000
$7,500
$2,500
If the assets of a business are $100,000 and equity is $20,000, the value of liability will be?
$100,000
$80,000
$120,000
$20,000
Mary Jane is setting up a new business. Before actually selling anything, she bought a van for $13,000, a market stall for $1,050, a computer for $450 and an inventory of goods for $8,000. She did not pay in full for her inventory and still owes $3,000 for them. She borrowed $10,000 from Jane Grey. After the events just described she has $1,400 cash in hand and $4,700 in the bank. What is the value of her capital?
$15,400
$11,560
$41,600
$15,600
Which of the following correctly identify the current assets
Stock, accounts receivables, cash in hand, cash at bank
Accounts payable, cash in hand, loan to C. Smith
Loan to C. Smith, accounts receivables, warehouse
Mortgage on office building, delivery van, accounts payable
K. James is starting a business. Before actually starting to sell anything, he bought fixtures for $1,200, a van for $6,000 and an inventory of goods for $2,800. B. Rub lent him $2,500. K. James has $200 in the business bank account and $175 cash in hand. What is the value of his capital?
$6,000
$12,875
$5.757
$7,875
Given the following information, Premises = $20,000, Inventory = $8,500, Cash = $100, Accounts Payables = $3,000 and Loan from A. Adams = $4,000. What is the amount for Capital?
$21,600
$21,100
$32,400
$21,400
Which of the following accounts would be decreased with a debit?
Premises
Bank
Motor Van
Loan from K. James
An amount of $700 is paid to the entrepreneur (owner) for personal use. Which account is debited?
Cash
Capital
Owner's Account
Bank
Using the double entry principles, which of the following statements is CORRECT?
i
ii
iii
iv
The business bought computer equipment on account from a supplier for $3,200. Which account is debited?
Accounts Payable
Cash
Computer Equipment
Capital
One of the following is not a transaction.
Mr. John started business with cash of $100,000.
Received interest from Bank $5,000
Paid salaries $300
Received a price list from suppliers.
90 Calculate the missing value liabilities in an accounting equation with the help of given data?
Furniture $90 000
Cash $100 00
Debtors $10 000
Other Assets $ 1 000
Equity $90 000
$111, 000
$ 201,000
$290, 000
$291, 000
