Font size
WorksheetsSECTION 1 ACCOUNTING
Total questions: 60
Worksheet time: 15hrs 0mins
Transactions and events that cannot be measured in money terms are not recorded in the books of accounts. It is due to Money Measurement Concept.
True
False
The system of recording transactions based on Dual Aspect Concept is known as (a) .
The proprietor is treated as a creditor to the extent of his capital according to:
(a) Cost Concept
(b) Business Entity Concept
(c) Going Concern Concept
(d) Materiality Concept
The rule “Debit all expenses and losses and credit all gains and incomes” is applicable to Personal Account
True
False
The debit balance of a personal account shows (a) .
What is the type of Drawings Account?
(a) Personal
(b) Real
(c) Nominal
Expenses
In Accounting, Goods is defined as:
(a) Items which purchased for own consumption.
(b) Items which are purchased for charity.
(c) Items which are purchased for resale.
(d) Items without any defect.
Personal Accounts are related to Individuals, Banks, Companies, etc.
True
False
The rule ‘Debit what comes in Credit what goes out’ is applicable to:-
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) Liability Account
Creditors are the (a) users of accounting.
(a) is a language of business.
Incomplete accounting system is called (a)
Management is the (a) users of accounting.
We record ___________in the books of accounts.
financial transactions
no financial transactions
both financial and non financial transactions
none of these
Which of the following is not a branch of accounting?
cost accounting
financial accounting
book keeping and accounting
management accounting
Which is the first step of accounting process?
Classifying
analyzing and interpretation
recording
financial statements.
Qualitative characteristics of accounting information are
Relevance
Reliability
Comparability
All of theses
Double entry system has two aspects_______and _________
(a)
Which system of accounting is more popular
Double entry system
single entry system
both a and b
none of these
End product of accounting is __________and _____________of accounting.
(a)
Asset or liability?
CASH
Asset
Liability
Neither
Which of the following is NOT found in an income statement?
Revenue
Net Profit
Prepaid Expenses
Income Tax Expense
Asset or liability?
ACCOUNTS RECEIVABLE
Asset
Liability
Neither
Monica Geller has assets of $120,000 and liabilities of $65,000. What is her equity (net worth)?
$165,000
$120,000
$65,000
$55,000
Asset or liability?
LAND
Asset
Liability
Neither
What is the equation to calculate Net Profit?
Gross Profit - Expenses
Revenue - Cost of Goods Sold
Cost of Goods Sold + Expenses
Revenue - Expenses
Asset or liability?
ACCOUNTS PAYABLE
Asset
Liability
Neither
Asset or liability?
REVENUE
Asset
Liability
Neither
Asset or liability?
LAST WEEK'S LABOUR COSTS
Asset
Liability
Neither
What is the equation to calculate Gross Profit?
Revenue - Expenses = Gross Profit
Revenue - Cost of Goods Sold = Gross Profit
Expenses - Revenue = Gross Profit
Revenue - Net Profit = Gross Profit
Asset or liability?
RENT EXPENSE
Asset
Liability
Neither
Chandler Bing has assets of $85,000 and liabilities of $185,000. What is his equity (or net worth)?
-$100,000
$100,000
-$185,000
$185,000
Asset or liability?
AUTOMOBILE
Asset
Liability
Neither
What is the balance sheet equation (also known as the accounting equation)?
Assets - Current Liabilities = Owners Equity
Owners Equity = Assets + Working Capital
Assets - Liabilities = Owners Equity
Liabilities = Current Assets + Non-current assets
Asset or liability?
EMPLOYEES
Asset
Liability
Neither
Both
These are used by investors, market analysts, and creditors to evaluate a company's financial health and earnings.
Statement of Financial Position
Financial Statements
Balance Sheet
Cash flows
Also called as Balance Sheet.
Statement of Financial Position
Financial Statements
Statement of Balance
Statement of Income
This is what the business owns.
Assets
Liablities
Loans
Owner's Equity
This is what the business owes.
Assets
Liabilities
Loans
Owner's Equity
What is NOT part of FS headings.
Name of the business
Title of Report
Total Assets
Date of the report
Two types of Financial Statement Account:
General and Journal Form
Report and Account Form
Statement of Cash flow and Income Statement
It is intended for sale or consumption within the entity’s normal operating cycle.
Non-current liabilities
Current liabilities
Non-current Assets
Current Assets
Also known as the "Long-term Assets"
Non-current Assets
Current Assets
Non-current liabilities
Current Liabilities
A liability expected to be settled in the entity’s normal operating cycle.
Non-current Assets
Current Assets
Non-current Liabilities
Current Liabilities
Refers to the financial obligations of a company that are not expected to be settled within one year.
Non-current Assets
Current Assets
Non-Current Liabilities
Current Liabilities
This is an example of
Report Form Balance Sheet
Account Form Balance Sheet
This is an example of
Report Form
Account Form
Following are accounts under _________________.
•Cash and cash equivalents
•Trade and other receivables
•Inventories
•Biological assets
•Investments
•Financial assets
•Investment property
•Property, plant, and equipment
Assets
Liabilities
Owner's Equity
Following are accounts under________.
•Trade and other payable
•Provision
•Financial liabilities
•Liabilities for taxes
Assets
Liabilities
Owner's Equity
Retained Earning can be found under _____________.
Assets
Liabilities
Owner's Equity
