WorksheetsREVISION BASIC ACCOUNTING KNOWLEDGE
Total questions: 12
Worksheet time: 14mins
Which of the following statements is INCORRECT?
Assets – Liabilities = Capital
Liabilities + Assets = Capital
Assets – Capital = Liabilities
Liabilities + Capital = Assets
Which of the following BEST describes the meaning of ‘Purchases’?
Items bought by a sole trader
Goods bought on credit
Goods bought where we pay by cash
Goods bought for resale
Which of the following BEST describes a trial balance?
It shows how much profit or loss we make
It is a special account
It is a list of balances on the books
It shows all the entries in the books
Which of the following should NOT be called ‘Sales’?
Office equipment sold
Goods sold for cash
Goods sold on credit
Sale of item previously included in ‘Purchases’
Gross Profit is:
Sales, less cost of sales
Cost of goods sold + opening inventory
Sales less purchases
Net profit less expenses of the period
Which of the following is NOT revenue expenditure:
Cost of motor tax for new van
Painting an extension to a building when it is first built
Cost of motor tax for existing van
Painting an extension to a building 3 years after it was built
Which of the following is NOT capital expenditure:
Purchase of a new van
Additional shop counter
Spending €1,000 on improving old machinery
Electricity costs of using machinery
Opening inventory= €22,200, closing inventory=€17,400 and cost of sales= €86,980. What was purchases for the year?
€82,180
€47,380
€39,600
€17,400
The Net Profit ratio measures:
What percentage of cost of sales is net profit
What percentage of sales is net profit
The net profit compared with industry averages
The net profit compared with the gross profit
Current assets= €30,000 including stock of €5,000 and current liabilities= €20,000. What is the acid test ratio be:
1.5:1
1.05:1
1.25:1
1.35:1
Which of the following is NOT an asset?
Machinery
Accruals
Prepayments
Accounts receivable
Buildings €500,000, Inventory €73,000, Cash €6,200, Accts payable €36,500, Bank loan €230,000, the amount of Capital is?
€212,700
€845,700
€579,200
€312,700
