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Worksheets10 Business Check In
Total questions: 21
Worksheet time: 21mins
McMahon wishes to commence business. Determine the owner’s equity in McMahon’s business. The business has the following items:
Cash at bank $4,000
Furniture $5,000
Land $50,000
Buildings $15,000
Inventories $2,000
Mortgage on buildings $50,000
$4,000
$50,000
$26,000
$76,000
The business commenced by depositing $10,000 in the business’s bank account. Which two accounts would we need to record changes to?
Capital (Owner's Equity)
Cash at Bank (Asset)
Cash at Bank (Capital)
Accounts Receivable (Asset)
Double entry in accounting means there must be________ entries for every transaction?
two
Three
six
one
________ are debts of the business?
assets
liabilities
owners equity
vehicles
assets decreases on the _______ side?
debit
two
credit
sixth
owners equity decreases on the _________ side?
credit
debit
payments
liability
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
rates and taxes are an/a ________?
profit
income
VAT
Expense
Which of the following are Assets?
Bank Account
Bank Loan
Vehicles
Bank overdraft
Furniture and fittings
The following are liabilities .
Bank Loan
Stock / inventory
Mortgage
Accounts Payable
When the business is owed money it is called
Accounts Receivable
Account Payable
The following are expenses
Insurance
Salaries
Sales
Fees Received
Petrol
When a business owner invests in the business
This increases equity
This decreases equity
Assets - Liabilities = Equity
TRUE
FALSE
The following can cause a decrease in equity
Drawings +
Loss
Profit
Income +
If I invest $2000 in my own business this causes
An increase of +$2000 in bank column
An increase of +$2000 in Equity Column
An increase in Income column of +$2000
If I buy equipment for $1000 ....which 2 of the following columns will I write in
This is a - $1000 in bank column
This is a - $1000 in equipment column
This is a + $1000 in equipment column
This is a + $1000 in bank column
If I take home $500 for personal use from my business which transactions will I carry out
Decrease bank Column by - $500
Increase bank Column by + $500
Decrease Equity by - $500
Increase Equity by + $500
