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WorksheetsIntroduction to Accounting - Unit 04
Total questions: 56
Worksheet time: 45mins
A non current asset of a furniture manufacturing business is,
Receivable building rent
Furniture for sale
Carpenter table
Cash in hand
Out of the following which is not considered as a transaction.
Damage of Rs. 10 000 worth of inventory.
Electricity payment of Rs. 5000.
Obtaining bank loan of 50 000.
Deciding to purchase machine worth Rs. 25 000.
Which of the following characteristics are observed in an asset?
1. Controlled by the business.
2. Inflow of future benefits to the business.
3. Arose as result of past transaction.
4. Receiving ownership in the future.
1,2,4
2,1,4
1,2,3
2,3,4
Mr. Jayasinghe commenced a rice selling business, which he buys paddy from his area and converts them into rice. One of his friend Mr. Kulasinghe has been recruited as an employee of this business and the business named as "singhe mills".
1.Select the type of business organization which "Singhe mills" relates to?
2.What is the correct statement of above business?
Select the answer with correct order
1. Cooperative societies, 2-It is controlled by the government
1. Sole proprietorship, 2-having a continued existence
1. Sole proprietorship, 2-mandatory to register
1. Cooperative societies, 2-having a legal personality
Select the answer which is included current assets only
Stock, debtors, bank loan, cash
Stock, debtors, bank balance, cash
Stock, creditors, commission received, cash
Stock, creditors, electricity expense, cash
Denushi decided to commence her business as ''Denushi Textiles." But she is inquiring you, who has the authority to set relevant fees for registering the business name. The correct answer is,
The secretary of relevant divisional secretariat office.
The grama Niladhari of relevant division.
The respective provincial council with in the authority of them.
The business name registrar of the relevant provincial council.
What is the main aim of accounting?
Fulfill the legal requirements
Calculate the profit of the business
Providing the required information for stakeholders in the business
To calculate the financial position of the business
Select the correct statements.
1. Reaching the foreign technology to the market. The domestic business are being developed.
2. As globalization the entire world has become a global village.
3. The changes in information and communication technology are always affect to the businesses positively.
4. As globalization. It is increased the distance among people.
2 & 3 only
1 & 2 only
1 & 4 only
3 & 4 only
Select the correct statement relates to state corporations
Should be incorporated under the companies Act
not having a legal personality
can take independent decisions
should be established under a parliament Act
Choose the answer that includes only “expenses” from the following items
Paid commission, Insurance charges, Creditors, Bank loan interest
Salaries, Debtors, Insurance charges, Electricity charges
Bank loan interest, Drawings, Advertising charges, Rent charges
Electricity charges, Salaries, Rent charges, Sales commission paid
If the value of the transaction is settled at the point of the transaction, it will be considered as a transaction on …(1)… basis. On the other hand, if the settlement is made later, it will be considered as a transaction on …(2)… basis
Credit, Cash
Money, Cash
Cash, Credit
Differed, Accrued
Choose the correct statement from the following statements that describes the owner's Equity
Amounts owed to the business by external parties.
The amount of assets held by the owner of a business.
The amount of assets held by the owner of a business.
The amount of assets held by a business to external parties.
Match the column “A” with Column “B” and select the correct answer in order
1-a,2-b,3-c,4-d
1-b,2-a,3-d,4-c
1-c,2-a,3-b,4-d
1-b,2-a,3-c,4-d
Choose the answer that includes only “Income” from the following items
Sales, Commission Received, Debtors, Return from Investment
Paid rent, Sales commission, Interest received, sales
Interest received, Rent received, Sales, Commission received
Sales, Creditors, Sales commission, Paid interest
Supplying electricity, water, lands and road development are known as,
Environmental factors
Subsidies
Essential services
Infrastructure facilities
Determining the scale of a business depends on several factors. Out of them the major factors are,
owners financial strength, skills, various relationships, experiences.
owners financial strength, number of employees, goods produced, various relationships.
goods and services produced, market share, skills. experiences.
goods and services produced, market share, skills, owners financial strength.
Select the correct statement out of the following.
Accounting helps to make financial activities of the business more systematic.
Presentation of financial statements is not a mandatory requirement by law for any business.
Every transaction occurred in the business are taken into consideration in accounting.
Financial records in a business are confidential and it is only used by the internal parties of the business in decision making.
Following shows asset, liabilities, equity, income and expenses generated by business transactions.
A. Motor vehicles
B. Electricity expenses
C. Furniture
D. Capital
E. Trading stocks
F. Bank loan (short term)
G. Cash balance
H. Rent payables
I. Creditors
J. Debtors
1.Letters which represent current liabilities.
2.Letters F,H shows
Select the answer with correct order
1.ADF , 2.An expense and a liability
1.DFG , 2.Non current asset
1.FHI , 2.A current liability
1.DEF , 2.An expense and income
Who is known as the father of accounting?
Albert Einstein
Issac Newton
Luca Pacioli
Lord Kanes
Which of the following legal condition is not relevant in conducting the partnership?
Partnership ordinance 1890
Company act no.07 of 2007
Fraud prevent ordinance 1840
Co-operative society act no.05 of 1972
Select the answer which includes a strength and an opportunity respectively after studying the business environment
Skillful employees and entitle for tax concessions
Constructing the highways and adequate capital amount
Managers who have experience and entitle for tax concessions
Introducing the loan scheme at low-interest rate by government and having the recognized brand name
Select the correct statement regarding the “profit”
Profit = Assets - Expenses
Profit = Income - Expenses
Profit = Expenses - Income
Profit = Assets - Equity
Globalization facilitates the conduct of business activities freely without any cross boarder. Globalization is,
removing any cross boarders and any other restrictions.
advancement in information and communication technology
the mutual relationship among countries in terms of economic, social and cultural dimensions.
the world locates globally.
Following are some assets of a business. Select the group which includes current assets only
Cash/Furniture/Debtors/Stocks
Land and building/Furniture/Motor vehicle/Investments
Land and building/Debtors/Stocks
Cash/Debtors/Trading stocks/Trade receivable
The business organization which is not having a legal personality.
Sri Lanka Rupavahini Corporation.
Sri Lanka Railway Department.
Sri Lanka Ports Authority.
Sri Lanka Bureau of foreign employment.
The liability arising from the purchase of goods or services on credit is called:
Creditors / Accounts payable
Debtors / Accounts Receivable
Loan
Drawings
Withdrawal of cash or goods by owner for personal use is classified as:
Personal expense
Sale of merchandise
Drawings
None of the above
Various factors of productions are required to commence businesses. Select the answer which is relate to the production “Capital”
Machinery, Lands, Owner
Cash, Machinery, Buildings
Employee, Managers, Owner
Natural Resources, Cash, Buildings
The basic purpose of accounting is to,
Comply with state requirements
Compute the applicable income tax
Provide information for decision-making
Determine the net income of a company
“increase in equity except due to the increases from capital introductions by owners” named as
Asset
Expense
Income
Liability
Damitha and Amitha, studying at Gurualla Vidyalaya, went to Sisil cool spot with their teacher
to have fruit juice and fulfil their thirst while doing sports practices. Amal runs the Sisil cool
spot in a rented building at Gurualla Trade centre, Amal buys fruits to prepare fruit juice from
Haritha farm where fruits are grown only using organic fertilizer.
1)Select the answer that shows a need and a want included in the above case respectively.
2)An example for, the external environment factor of Gurualla Vidyalaya is
1)Education, Gurualla Trade Center; 2)Amal
1)Food, Fruit Juice; 2)Sports Teacher
1)Food, Fruit Juice; 2)Amal
1)Education, Gurualla Trade Center; 2)Damitha
In a business engaged in buying and selling computers, the computers considered as non current assets are the computers which are
in the stores for sale
in the shop for sale
Obtained for the owner's use
Used in the office
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.
Users of accounting information include
Creditors
Lenders
Customers
All of the above
Dilini, a diploma holder of sewing children's clothes started a business to sew and sell children's clothes as 'Dilu Tex' with Dilan, a designer, employing capital equally and purchasing a building close to a preschool.
Select the correct statement about the business of 'Dilu Tex in this case.
This is a business that produce goods.
This is a business that produce services.
Registration the name of this business is not compulsory.
This business has a legal entity
The Most Appropriate Definition for Business.
Trade and Other Services.
The Rapid Growth of Business.
Business Integrated with Information Technology.
Any Economic Activity Which Satisfies Human Needs and Wants.
Nalin, an engineer resides in the 'Rossvila' apartment after completing his doctoral studies. He conducts a domestic solar panel manufacturing and distribution business as 'Vijaya Solar Panel' Sun Power (Pvt) Limited supplies raw materials for the production constantly. Supun helps for the manufacturing activities. The products are distributed through the chain of 'Teccity' Supermarkets owned by Ruwan.
In the above case, Nalin has fulfilled his housing need from,
Vijaya Solar Panel business.
Tec city Supermarket.
Sun Power (Pvt) Limited.
Rossvila Lodge.
Select the answer which includes only the external environmental factors of the Vijaya Solar
Panel business.
Nalin, Teccity supermarket
Ruwan, Sun Power (Pt) Company Limited
Supun, Tec city supermarket
Supun, Sun Power (Pvt) Company Limited
To the Vijaya Solar Panel business, the chain of Teccity supermarket is,
a strength.
a weakness.
an opportunity.
a threat.
An example for the capital, which is a production factor of Nalin's business, is
the building of Tec city supermarket.
the building of Sun Power (Pt) Company Limited.
the apartment of Rossvilla.
the building of Vijaya Solar Panel business.
A reason for Sun Power (Pvt) Company Limited to be interested in Vijaya Solar Panel
business is,
to obtain dividends.
to get continuous orders.
to obtain products at a fair price.
to ensure the security of the investment.
Madagama Multipurpose Cooperative Society Limited is a ……1….. sector ……2….. organization.
Select the answer that shows the correct terms to the places 1 and 2 in the above statement respectively.
private, for-profit
private, not for profit
public; for profit
public, not for profit
democratic control and volunteer and open membership are characteristics of a business organization
An example of this kind of business organization is
Gunawardane and Sons.
Maharagama Multipurpose Co-operative Society Limited
Ceylon Petroleum Co-operation.
Sri Lanka Telecom PLC.
Samadhi, who is currently working at Ravimal Company and the best performer at the G.C.E. (A/L.) 2017 in Nelumwila Maha Vidyalaya of which a new laboratory and buildings were developed by the concept of "The nearest school is the best', received a letter from the University Grant Commission mentioning that she has been selected to the University.
What is the basic human need satisfied by the Nelumwila Maha Vidyalaya in this case?
Health
Housing
Security
Education
Answer question by using following information.
Sales 500 000
Purchases 200 000
Machines (Cost) 400 000
Carriage inwards 10 000
Stocks as at (01.01.2021) 20 000
Debtors 40 000
Electricity 15 000
Creditors 60 000
Advertising 12 000
Rates 10 000
Capital (as at 01.01.2021) 600 000
Commission income 20 000
Cash Balance 50 000
Bank Overdraft 20 000
All stocks have been sold out.
Total income for the year ended 31.12.2021 in Sahan’s Business is,
Rs. 270 000
Rs. 290 000
Rs. 500 000
Rs. 520 000
Sales 500 000
Purchases 200 000
Machines (Cost) 400 000
Carriage inwards 10 000
Stocks as at (01.01.2021) 20 000
Debtors 40 000
Electricity 15 000
Creditors 60 000
Advertising 12 000
Rates 10 000
Capital (as at 01.01.2021) 600 000
Commission income 20 000
Cash Balance 50 000
Bank Overdraft 20 000
All stocks have been sold out.
Current liabilities as at 31.12.2021 in Sahan’s Business,
Rs. 20 000
Rs. 60 000
Rs. 80 000
Rs.680 000
Which of the following is not considered a factor of production?
Land
Labor
Capital
Taxes
What is the purpose of SWOT analysis?
To identify strengths, weaknesses, opportunities, and threats
To analyse consumer behavior
To evaluate financial performance
To assess market demand
What Is the Minimum Number of Members to Start a Cooperative Society?
20
2
15
10
Following Items Are Related to Question.
A. Debtors
B. Creditors
C. Sale
D. Capital
E. Furniture
F. Bank Loan
G. Investment
H. Building
I. Cash in Hand
J. Bank Overdraft
The Answer, Which Includes Assets Only?
A, B, C, D,E
D, E, F, I,J
A, E,G,H, I
A,C, D, E, F
Following Items Are Related to Question.
A. Debtors
B. Creditors
C. Sale
D. Capital
E. Furniture
F. Bank Loan
G. Investment
H. Building
I. Cash in Hand
J. Bank Overdraft
The Answer, The Answer Which Includes Liabilities Only
B C D
C E F
H I B
B F J
When The Man Has Become More Civilized His Wants and Needs Also Expanded. As A Result of Surplus in Production Goods Exchange System Was Introduced. The Major Reason for The Generation of Surplus in Production Was,
The Availability of Excess Resources to Produce a Surplus.
Producing Goods More Than Their Skills and Talents
Expansion in Needs and Wants with The Development of Civilization
Realizing That the Wants Could Be Fulfilled Through Exchanging
The equity of Kasun's business was Rs. 600 000 as at 01.01.2018 and Rs. 680 000 as at 31.12.2018. During the year owners’ drawings was Rs. 20 000. what is the amount of net profit earned the business during the year?
20 000
80 000
100 000
680 000
Following shows asset, liabilities, equity, income and expenses generated by business transactions.
A. Motor vehicles
B. Electricity expenses
C. Furniture
D. Capital
E. Trading stocks
F. Bank loan (short term)
G. Cash balance
H. Rent payables
I. Creditors
J. Debtors
1.Letters which represent current liabilities.
2.Letters F,H shows
Select the answer with correct order
1.ADF , 2.An expense and a liability
1.DEF , 2.An expense and income
1.DFG , 2.Non current asset
1.FHI , 2.A current liability
Select the correct statement regarding the “profit”
Profit = Assets - Expenses
Profit = Assets - Equity
Profit = Income - Expenses
Profit = Expenses - Income
Which of the following is considered an asset?
Bank loan
Office supplies
Employee salaries
Owner's equity
Which one of the following is not an external user of accounting information?
Investor
Creditor
Manager
Customer
Which branch of accounting deals with the calculate the profit or loss of a business during a period and to provide an accurate picture of the financial position of the business as on a particular date to investors or banks?
Auditing
Cost accounting
Financial Accounting
Tax accounting
