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WorksheetsAccounting Basics
Total questions: 25
Worksheet time: 13mins
Cash at Bank is ...
a liability
an asset
an expense
equity
Double entry in accounting means there must be________ entries for every transaction?
two
Three
six
one
A general Leger/T) has a ______ and _______ side.
cash receipt and debtors
debit and payments
debit and credit
creditors and debtors
Assets increase on the ________ side?
subsidiary
T-account
credit
debit
owners equity decreases on the _________ side?
credit
debit
payments
liability
________ are debts of the business?
assets
liabilities
owners equity
vehicles
Equipment are an example of an/a ______?
loan
asset
liability
owners equity
when the owner takes money out of the business's account it is called _________?
credit
drawings
debt
borrowing
water and electricity is an/a __________?
credit
asset
expense
income
The accounting period of a business is separated into activitiess that help the business keep its accounting records in an orderly fashion.
Accounting Period Cycle
Source Document
Fiscal Year
None of the Above
Concept: a business's records should never be mixed with an owner's personal records and reports
adequate disclosure
business entity
objective evidence
going concern
Concept: Financial statements are prepared with the expectation that business will remain in operation indefinately
going concern
materiality
accounting period cycle
matching revenue with expenses
Which of the following is correct?
Owner’s Equity = Liabilities + Assets
Liabilities = Assets + Owner’s Equity
Assets = Liabilities + Owner’s Equity
Assets = Owner’s Equity
Which of the following is correct about double entry system of accounting?
Every business transaction brings at least two financial changes in business.
Financial changes are recorded as debits or credits in two or more accounts.
Every debit entry has a corresponding credit entry.
All of the above
Which of the following business has unlimited liability
Sole trader
Limited Liability Partnership
Private Limited Company
Public Limited Company
Which type of business organisation has the following characteristics?
- conducts business separate from its owners
- the owners have limited liability
- the organisation is a taxable entity
Sole trader
Partnership
Company/corporation
None of the above
A partnership business normally owned by 2 to 50 partners
True
False
The accounting equation must always be
balanced
uneven
zero
equal to the square root of 5
For an investor, personal and business money are put together and not kept separate.
TRUE
FALSE
