WorksheetsAccounting Concepts
Total questions: 15
Worksheet time: 6mins
Accounts payable (Creditors Control) is an example of...
Current Liability
Current Assets
Expense
Income
Accounts Receivable (Debtors Control) is an example of...
Current Liability
Current Asset
Non-Current Asset
Non-Current Liabilities
Advertising is a/an
Income
Capital
Expense
Current Asset
Bank is a/an
Expense
Current Asset
Current Liability
Income
Bank charges is a/an
Expense
Income
Capital
Current Asset
Commission Income
Income
Expense
Current Liability
Current Asset
Loan from La Mercy Bank is a/an
Non-Current Liability
Expense
Current Liability
Asset
Choose the three correct equations...
A = L + C - D + I - E
O = A - L
A = O - L
A = O + L
...states that the assets and liabilities of a business should be presented in accounting records at their original cost.
Historical Cost Rule
Business Entity Rule
Rule of Materiality
Matching Principle
... states that the transactions associated with a business must be separately recorded from those of its owners or other businesses. Doing so requires the use of separate accounting records for the organization that completely exclude the assets and liabilities of any other entity or the owner.
Business Entity Rule
Historical Cost Rule
Rule of Materiality
Matching Principle
.... Accounting provides guidance for the accounting, according to which all the expenses should be recorded in the income statement of the period in which the revenue related to that expense is earned.
Matching Principle
Historical Cost Rule
Rule of Prudence
Rule of Materiality
is a resource with economic value that an individual, business, or country owns or controls with the expectation that it will provide a future benefit. these are reported on a company's balance sheet and are bought or created to increase a firm's value or benefit the firm's operations.
Asset
Liaibility
Vehicle
Land and Buildings
...is something a person or company owes, usually a sum of money. these are settled over time through the transfer of economic benefits including money, goods, or services. Recorded on the right side of an account.
Liability
Assets
Income
Expenses
Themba buys 2000 bags at R80 each and paid by EFT. The effect on the accounting equation is as follows:
Bank decreases & stock increases
Bank increases & Stock increases
Stock decreases & expenses increases
Drawings increases & Liabilities increases
Solly sells 1000 bags for cash at a mark of 40% on cost. The effect on the accounting equation is as follows:
bank increases & stock decreases
Income(sales) increases & cost of sales (expense) increases
Bank increase & stock increase
Bank decreases & stock increases
Income (Sales) decreases & cost of sales (expense) decreases
No effect on the accounting equation
