WorksheetsAccounting Summative Test
Total questions: 57
Worksheet time: 28mins
Any owner's equity increase
debit
credit
Any liability increase
debit
credit
Any asset increase
debit
credit
Sales decrease
debit
credit
Accounts receivable decrease
debit
credit
Prepaid Insurance decrease
debit
credit
Accounts payable decrease
debit
credit
Capital decrease
debit
credit
Supplies decrease
debit
credit
Accounts receivable increase
debit
credit
Cash decrease
debit
credit
All of the following statements are correct, except for?
Assets are debit in nature
Expenses are credit in nature
Liabilities are credit in nature
Revenues are credit in nature
All of the following statements are correct, except for?
Increases in assets and expenses are debited
Decreases in assets and expenses are credited
Increases in liabilities and owner's equity are debited
Decreases in revenues are debited
Debit or credit? Bank increases
Bank is an asset, so it should be debited
Bank is an asset, so it should be credited
Bank is a liability, so it should be debited
Bank is a liability, so it should be credited
Debit or credit? Loan increases
Loan is an asset, so it should be debited
Loan is an asset, so it should be credited
Loan is a liability, so it should be debited
Loan is a liability, so it should be credited
Identify the correct accounts affected given the following transaction: Paid wages $600
Bank and wages
Accounts payable and wages
Bank and accounts payable
Bank and accounts receivable
Identify the correct accounts affected given the following transaction: Purchased supplies on credit from Supplies World
Purchases and bank
Supplies and bank
Purchases and accounts receivable - supplies world
Supplies and accounts payable - supplies world
Identify the correct reporting of the following transaction: Received $600 for services performed
Debit Bank $600
Debit Accounts Receivable $600
Debit Bank $600; Credit Service Fees Revenue $600
Debit Service Fees Revenue $600; Credit Bank $600;
Identify the correct transaction given the following general journal entry: debit supplies $400; credit accounts payable OKC Ltd $400
Purchased equipment from OKC Ltd $400 cash
Sold supplies $400 cash
Received a loan from OKC Ltd $400
Purchased supplies from OKC Ltd $400 on credit
Identify the correct transaction given the following general journal entry: debit bank $800; credit service fees $800
Performed services for cash $800
Sold goods for cash $800
Performed services for GSW Ltd on credit $800
Received $800 from accounts receivable
A business record should never be mixed with owners's personal records- Identify the principle
Dual Concept
Business Entity
Objective Evidence
Materiality Principle
The same accounting procedure must be followed in the same way in each accounting period.
Consistency
Materiality
Objectivity
Conservatism
The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period.
Matching Principle
Periodicity
Historical Cost
Full Disclosure
Financial statements are prepared with the expectation that a business will remain in operation indefinitely.
Going Concern
Consistency
Conservatism
Matching Principle
GAAP stands for:
Generally Accepted Auditing Procedures
Generally Accepted Accounting Principles
Generally Accepted Accounting Procedures
Generally Auditing Accounting Principles
To form my business, I used all of my savings and borrowed from the bank, and I'm personally liable for all of the debts. This statement is an example of which of the following forms of business ownership:
Partnership
Sole proprietorship
Corporation
Cooperative
This type of business is owned by two or more people.
Sole Proprietorship
Partnership
Corporation
Franchise
What is the definition of UNLIMITED LIABILITY?
A legal obligation on the owners of a business to settle all debts of the business
Owners are not fully liable for the company’s debts
What is the term for balancing a company's cash account to its bank account?
Account balancing
Bank reconciliation
Adjustment
Cleared balance
In order to perform a bank reconciliation you will need the check register and which of the following?
Bank Statement
Chart of Accounts
Accounts Payable
Accounts Receivable
When check is not paid by the bank, it is called?
Honoured
Endorsed
Dishonoured
Both A & B
A positive bank balance will appear as a ____________balance in the bank statement
Debit
Credit
What occurs when a customer has withdrawn more funds than were actually in their bank account resulting in the customer owing money to the bank?
Credit balance
Overdraft
Levies
Transactions
An Income Statement is
A formal way of listing sales and expenses for the year.
Another word for 'Gross Profit'
Same as the Cash Flow Statement
None of the above.
The income statement shows the financial performance of the business
on a GIVEN DATE
for a PERIOD of time
Net profit is
Assets less Liabilities
Revenue less Expenses
Revenue less Liabilities
Liabilities less Assets
If the capital of a business is ₹ 5,00,000 and outside liabilities are ₹200,000. Calculate total assets of the business.
3,00,000
7,00,000
10,00,000
2,50,000
If total assets of a business are rs 10,00,000 and capital is rs 4,00,000. Calculate Creditors......
7,00,000
6,00,000
14,00,000
8,00,000
Which of the following equation is correct.....
Assets= Liabilities - Capital
Liabilities= Assets - Capital
Capital= Assets + Liabilities
Assets= Capital- Liabilities
State the source document for this transaction:
Sold goods on credit to customer Lew.
Sales Journal
Credit Note
Invoice
Debit Note
State the source document for this transaction:
Bank charges was deducted from the owner's bank account.
Bank statement
Receipt
Petty cash voucher
Payment voucher
Double entry in accounting means there must be________ entries for every transaction?
two
Three
six
one
A general Leger/T) has a ______ and _______ side.
cash receipt and debtors
debit and payments
debit and credit
creditors and debtors
Assets increase on the ________ side?
subsidiary
T-account
credit
debit
owners equity decreases on the _________ side?
credit
debit
payments
liability
when the owner takes money out of the business's account it is called _________?
credit
drawings
debt
borrowing
