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WorksheetsLecture 1 Group A
Total questions: 10
Worksheet time: 5mins
Accounting is a profession that has evolved in response to society’s need for economic information to help people make
products
progress
decisions
money
Assuming there were no drawings or contributions of capital, profit for 2014 is _.
$160,000
$120,000
$300,000
$220,000
The assets of Frank’s business increased by $40 000 and the liabilities increased by $10 000 during the current year. If the profit for this period was $25 000, what additional contribution or withdrawal was made by the owner? (Assume only a withdrawal or a contribution was made.)
Drawings $10,000
Contributions $10,000
Contributions $5,000
Drawings $5,000
On 2 January 2014 Fife Corp buys goods from O’Brien and agrees to pay for them within 60 days. On the balance sheet for Fife Corp at 2 January 2014 the amount owing to O’Brien would be reported as _.
advance payment by a customer
accounts receivable
accounts payable
prepaid expenses
If an entity has assets of $168 900 and liabilities of $70 000 its equity is:
$238,900
$238,990
$98,990
$98,900
_ is/are resources controlled by the entity as a result of past events and from which
future economic benefits are expected to flow to the entity.
Liabilities
Assets
Equity
Income
If income is $180 000, rent expense is $120 000 and advertising expense is $10 500, profit or loss is
_.
$300,900 profit
$49,500 profit
$49,500 loss
$300,500 loss
If the loss for the period is $15 000 and total income is $115 000, total expenses for the period are _:
$100,000
$130,000
$115,000
$145,000
From the point of view of a business entity, a person or business to whom a debt is owed is known as a _.
Debtor
Creditor
Customer
Shareholder
Julio’s opening capital at 1 July 2011 was $50 000, his profit for the year was $18 000 and his drawings were $15 000. What is the final balance of his capital at the end of the year?
$68,000
$50,000
$83,000
$53,000
