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Introduction to Accounting as a system

Total questions: 13

Worksheet time: 9mins

Name
Class
Date
1.

Which of the following is the correct definition for the term transactions?

a)

A list of items in a business

b)

A summary of activities in a business

c)

People who operate a business

d)

A program used by the business.

2.

John owes Sally $500. John is Sally's _____________.

a)

Business partner

b)

Accountant

c)

Debtor

d)

Creditor

3.

The third stage of the accounting cycle is _____________.

a)

Double Entry

b)

Source documents

c)

Trial Balance

d)

Income Statement

4.

Another name of the Balance Sheet is ____________________.

a)

Income Statement

b)

Journal

c)

Statement of Financial Position

d)

Trading and Profit and Loss Account

5.

All of the following are examples of Assets EXCEPT

a)

Cash at the Bank

b)

Cash in Hand

c)

Building

d)

Creditors

6.

If Assets amounts to $1 500 and Liabilities amounts to $600, what is the amount for Capital?

a)

$800

b)

$850

c)

$900

d)

$2 100

7.

If Capital amounts to $2 550 and Liabilities amounts to $400, what is the amount for Assets?

a)

$2950

b)

$2150

c)

$2800

d)

$3050

8.

All of the following are Books of Original Entry EXCEPT

a)

Cash receipt

b)

General Journal

c)

Petty Cashbook

d)

Purchases Daybook

9.

All of the following are Source Documents EXCEPT

a)

Petty Cashbook Voucher

b)

Cheque

c)

Credit Note

d)

Returns Journal

10.

The fifth Stage of the Accounting Cycle

a)

Balance Sheet

b)

Source Documents

c)

Income Statement

d)

Double Entry

11.

Which stage in the accounting cycle is used to check arithmetic?

a)

Fourth Stage

b)

Third Stage

c)

First Stage

d)

Second Stage

12.

Mary has some snacks; she intends to use the snacks to start her business operation as Mary's Snack shop. Which accounting equation fits Mary's business?

a)

Assets = Liabilities

b)

Assets = Capital + Liabilities

c)

Assets = Capital

d)

Liabilities = Assets

13.

Bernard plans to start a business. The cost to start the business is $5 000. He has $2 600 to invest, how much money does he need to borrow to start the business?

a)

$7 600

b)

$2 400

c)

$2 500

d)

$2 600