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Accounts Q2

Total questions: 15

Worksheet time: 28mins

Name
Class
Date
1.

Motor vehicles, building and machines are considered to be what to a company?

a)

Liabilities

b)

Revenue

c)

Assets

d)

Expenses

2.

The money that is owed to a company by individuals who buy items now and agree to pay later is called ...

(a)  

3.

Assets that a company will own and use in the business for more than a year are called

(a)  

4.

When an asset increases we _____

a)

Debit

b)

Credit

5.

When a liability increases we ___

a)

Debit

b)

Credit

6.

The money an owner invests in the business is called (a)  

7.

When an owner takes money out of the business for his/her personal use it is called

a)

Liabilities

b)

Loans

c)

Drawings

d)

Trade receivables

8.

The accounting equation states that Assets =

a)

Liabilities + Capital

b)

Liabilities - Capital

c)

Liabilities + expenses

d)

Capital + expenses

9.

On September 29th, Mary bought a new motor vehicle from Lifestyle Motors and paid cash. Which two accounts in Mary's books will be affected?

a)

Motor vehicles and bank

b)

Mary and Lifestyle Motors

c)

Lifestyle Motors and Motor Vehicles

d)

Motor Vehicles and cash

10.

When capital increases we ______

a)

Debit

b)

Credit

11.

When our stationary store buys more pencils to resell, what account do we record the purchase of these pencils in?

a)

Inventory

b)

Purchases

c)

Sales

d)

Pencils

12.

We paid Lynne $500 by cheque. Which two accounts will be affected?

a)

Payments and Lynne

b)

Lynne and Bank

c)

Bank and Expenses

d)

Lynne and cash

13.

When we paid Lynne the $500 owed to her by cheque, our bank balance decreased. How would we record that in our accounts?

a)

Debit bank

b)

We will not record it

c)

Credit bank

d)

Credit Lynne

14.

When we received a cheque for the $5000 owed to us by Yasmin Enterprises, how would we record that in our accounts?

a)

Debit Bank

Credit Yasmin Enterprises

b)

Debit Yasmin Enterprises

Credit Bank

c)

Debit Yasmin Enterprises

Credit Cash

d)

Debit Cash

Credit Yasmin Enterprises

15.

Trade payables is a current liability and refers to the money owed to _______ by _____

a)

Credit customers, us

b)

Credit suppliers, us

c)

Us, credit customers

d)

Us, credit suppliers