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WorksheetsAccounts Practice
Total questions: 66
Worksheet time: 35mins
Which of the following are Fixed Assets?
Bank Loan
Bank Account
Bank overdraft
Furniture and fittings
Select the long term liability.
Bank Overdraft
Stock
Mortgage
Creditors
When the business is owed money, these people are called?
Creditors
Debtors
Expenses
Revenue
Which if the following is an expense?
Mortgage
Bad Debt
Sales
Fees Received
Which if the following is a revenue?
Sales
Salaries
Debtors
Advertising
Which of the following increases capital?
Loss
Expenses
Drawings
Revenues
What is the difference between fixed assets and current assets?
Fixed assets provide benefits that are used within one financial period but current assets provide benefits that last beyond one financial period
Fixed assets provide benefits that last beyond one financial period but current assets provide benefits that are used within one financial period
Fixed assets are easily converted to cash but current assets are not easily converted to cash easily
Fixed assets are not loans but current assets are loans
Which of the following decreases capital?
Investment
Expenses
Income
Revenues
Which of the following are current assets?
creditors, loan, cash at bank
cost of sales, sales returns, cash in hand
debtors, utilities, sales revenue
cash at bank, stock, debtors
Which of the following are fixed assets?
cash in hand, loan, debtors
motor vehicles, equipment, land & premises
stock, cash at bank, capital
creditors, equipment, electricity expense
Choose the correct statement about the liabilities of a business.
Receivables of business
Owner's debt
Debts of the business
Belonging to the business
Which one is not a long term liability?
Bank loan
Mortgage
Long Term Loan
Bank overdraft
How often is depreciation recorded?
Weekly
Monthly
Yearly
Daily
How is depreciation classified?
As an asset
As an expense
As capital
none of the above
What is the name of the account that shows depreciation accumulating?
Depreciation Account
Doubtful Depreciation
Diminishing Depreciation
Provision for Depreciation Account
Only ___________ assets are depreciated.
Fixed
Current
Short-term
Intanglible
How is depreciation recorded
Debit - Profit & Loss (Depreciation Expense) / Credit - Provision for Depreciation
Credit - Profit & Loss (Depreciation Expense) / Debit - Provision for Depreciation
Debit - The Asset purchased / Credit - Provision for Depreciation
Credit - Machinery Disposal / Debit - Provision for Depreciation
Depreciation methods should (a) change from year to year.
Estimated sales value of an asset after its working is called (a) .
In Straight line method, annual amount of depreciation remains (a) in comparison to diminishing balance method
The original cost of an asset is Rs. 1,20,000 and its Scrap Value is likely to be Rs.20,000 after its estimated useful life of 10 years, the annual depreciation written off will be (a) .
The original cost of a machinery is Rs.15,000, salvage value is Rs.1500 after 9 years and repair charges in second year is Rs.1,000. The Rate of Depreciation per annum is (a)
Amortisation is a gradual and systematic writing off of--------------.
(a)
When Provision for depreciation account is created depreciation is charged to (a) .
Characteristic of a depreciation is -
Decline in the value of assets
Depreciation is a permanent nature
Depreciation is a known case expense
All of these
Depreciation arises due to -
Fluctuations
Fall in the value of money
Temporary fall in the market value of asset
Physical Wear and tear
The process of writing the difference of totals on the shorter side of the account is known as – – – –.
(a)
The main objective of preparing a trial balance is to verify the – – – – accuracy of accounting entries.
(a)
A list of balances of all ledger accounts and cash book is called – – – –.
(a)
Returns Outwards A/c generally has a – – – – balance.
(a)
Cash A/c always has a – – – – balance.
(a)
Following balances are given to you on 1st April,2019: Stock A/c Rs.50,000; Building A/c Rs.80,000;Machinery A/c Rs.60,000;Creditors Rs.90,000. Balance of capital A/c will be Rs.1,10,000.
True
False
The error which is revealed by the trial balance is ______________.
1) Wrong amount posted in the ledger account
2) Wrong amount entered into the books of original entry
3) Complete omission
4) None of them
All items with debit balance in the ledger will be (a)
Total debit must be (a) total credited.
In the layout of trial Balance, the "capital" is mainly on the _____
Credit side
Debit side
Both credit and debit side
It depends if the capital is debited or credited
Provision for doubtful debts is posted on the ______ in the trial Balance.
Debit
Credit
Both sides
I am not sure, doubtful debts should not reflect in the trial Balance.
One difference between trial Balance and balance sheet is that, while the balance sheet is a statement showing assets and liabilities, the trial Balance shows:
The ledger obligation in any business
The classification of balances
The financial position
Lists of ledger balances
Trial balance is used to check the accuracy of
Balance sheet balances
Ledger accounts balances
Cash flow statement balances
Income statement balances
What is used in preparing trial balance?
Specialised Journals
Balance Sheet
Ledger Accounts
General Journa
When is trial balance prepared?
At the end of an accounting period
At the end of a year
Frequently during the year
At the end of a month
Furniture is regarded as
Assett
Fixed Assett
Liability
Current Liability
Which one from the list below doesn't represent the Accounting equation?
A = OE + L
A - L = OE
A - OE = L
OE = A + L
How will you calculate profit?
Income - Expenses
Income + Expenses
Income x Expenses
Capital - Expenses
Profit is the amount of money left over after all expensenses have been paid.
True
False
What will happen to liabilities when a business takes out a loan?
Loans will increase
No effect
Loans will decrease
Assets= Capital+--------------.
(a)
Accounting equations is prepared as per ---------------concept.
(a)
