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Business Basics Revision - Pryce

Total questions: 26

Worksheet time: 13mins

Name
Class
Date
1.

Which of the following type of business is owned and operated by one person?

a)

Sole trader

b)

Cooperative

2.

Limited Liability means?

a)

A firm is unlikely to go bankrupt

b)

Shareholders cannot be asked to pay for the company debts

3.

In which form of business, there is no need to share profits?

a)

Company

b)

Sole trader

4.

The Human Resource department is responsible for which of the following?

a)

Preparing Invoices

b)

Approving maternity leave

c)

Selling business resources

d)

Delivering resources to customers

5.

The human resources (HR) function of a business is

concerned with managing and motivating people

in an organisation. It is sometimes referred to as

the _ _ _ _ _ _ _ _ _ department.

(a)  

6.

T or F. The role of a business is to produce and distribute goods and services to meet the need and demand of consumers

a)

True

b)

False

7.

This function of business focuses on telling consumers about a business's goods and services.

a)

Financing

b)

Management

c)

Marketing

d)

Production

8.

Customers that buy goods from us on credit are referred to as __________.

a)

Debtors

b)

Creditors

c)

Customers

d)

None of the above

9.

A type of Business that is owned and operated by by five brothers.

a)

Partnership

b)

Non-Trading Organization

c)

Sole Proprietor

d)

Private Limited company

10.

In double entry accounting transactions are recorded....

a)

In terms of debits and credits.

b)

In terms of Debits

c)

In Terms of Credits

d)

In no special terms

11.

Debit is....

a)

the side where all transactions are recorded

b)

The side where assets increase

c)

The side where liabilities and owner's equity increase

12.

Revenue....

a)

Increases on the Credit Side and decreases on the Debit Side

b)

Increases on the Debit Side

c)

Does not increase nor decrease

13.

Liabilities......

a)

Decreases on the Debit Side and increase on the credit

b)

Increases on the Debit Side

c)

Decreases on the Credit Side

14.

Transactions can sometimes use more than two accounts....

a)

No

b)

Yes

c)

Transactions are limited to only two accounts

15.

If the owner of the business is investing $3,000 in the company this means that...

a)

There is a $3,000 increase on the debit side in the Cash account

b)

There is a $3,000 decrease on the debit side in the Cash account

c)

There is a $3,000 increase in the Capital account on the debit side

d)

There is an increase in the computer equipment account.

16.

If the owner of the business is investing $3,000 in the company this means that...

a)

THe owner has money everywhere

b)

There is a $3,000 decrease on the debit side in the Cash account

c)

There is a $3,000 increase in the Capital account on the debit side

d)

There is a $3,000 increase in the Capital account on the credit side

17.

Credit is.....

a)

The right side of the T-account and can also means that you purchase something that you will pay for later

b)

The left side of the T-account and can also means that you purchase something that you will pay for later

c)

The side where Assets and Expenses increase

18.

According to the Debit - Credit rules, any increases to the Cash at Bank account will be recorded on the _________ side of the ledger account.

a)

left

b)

right

c)

middle

19.

The business owner, Jack invested $9000 into the business bank account. What is the double entry to record this transaction?

a)

Debit Bank and Credit Capital

b)

Debit Capital and Credit Bank

c)

Debit Capital and Credit Jack

d)

Debit Jack and Credit Bank

20.

Sold equipment by cash $700. What is the double entry to record this transaction?

a)

Debit Cash and Credit Sales

b)

Debit Cash and Credit Equipment

c)

Debit Equipment and Credit Cash

d)

Debit Sales and Credit Equipment

21.

Bought a computer by cash $2500. What is the double entry to record this transaction?

a)

Debit Computer and Credit Cash

b)

Debit Cash and Credit Computer

c)

Debit Cash and Credit Purchases

d)

Debit Purchases and Credit Cash

22.

Sold goods on credit to Mark. What is the double entry to record this transaction?

a)

Debit Cash and Credit Sales

b)

Debit Mark and Credit Sales

c)

Debit Sales and Credit Mark

d)

Debit Cash and Credit Sales

23.

Bought goods worth $4000 on credit from Ben. What is the double entry to record this transaction?

a)

Debit Purchases and Credit Cash

b)

Debit Cash and Credit Purchases

c)

Debit Ben and Credit Purchases

d)

Debit Purchases and Credit Ben

24.

Jack withdrew goods worth $500 from the business for his personal use. What is the double entry to record this transaction?

a)

Debit Goods and Credit Jack

b)

Debit Jack and Credit Drawings

c)

Debit Drawings and Credt Purchases

d)

Debit Purchases and Credit Drawings

25.

Bought computers worth $3000 on credit from Computers Ltd. What is the double entry to record this transaction?

a)

Debit Cash and Credit Computers

b)

Debit Computers and Credit Cash

c)

Debit Computers Ltd and Credit Computers

d)

Debit Computers and Credit Computers Ltd

26.

Sold old computers worth $1500 by cheque. What is the double entry to record this transaction?

a)

Debit Computers and Credit Cash

b)

Debit Computers and Credit Cheque

c)

Debit Bank and Credit Computers

d)

Debit Computers and Credit Bank