WorksheetsAccounting Quiz I
Total questions: 10
Worksheet time: 8mins
Which of the following statements is incorrect? (A) Assets + Capital = Liabilities (B) Capital = Assets – Liabilities (C) Liabilities + Capital = Assets (D) Liabilities = Assets – Capital
Assets + Capital = Liabilities
Capital = Assets – Liabilities
Liabilities + Capital = Assets
Liabilities = Assets – Capital
Which of the following is not an asset? (A) Cash at the bank (B) Premises (C) Inventory (D) Accounts payable
Cash at the bank
Premises
Inventory
Accounts payable
Which of the following is a liability? (A) Buildings (B) Accounts receivable (C) Loan from J. Henry (D) Equipment
Buildings
Accounts receivable
Loan from J. Henry
Equipment
Which of the following best describes the meaning of ‘Sales’? (A) Items sold for cash or on credit (B) Assets sold on credit (C) The sale of items bought previously (D) Sale of items previously included in ‘Purchases’
Items sold for cash or on credit
Assets sold on credit
The sale of items bought previously
Sale of items previously included in ‘Purchases’
When should the trial balance totals differ? (A) Only when it is drawn up by the accountant (B) When drawn up before the profit and loss account (income statement) is prepared (C) If drawn up halfway through the financial year (D) Never
Only when it is drawn up by the accountant
When drawn up before the profit and loss account (income statement) is prepared
If drawn up halfway through the financial year
Never
What was the balance on the account of P Norman in MC 17 on 23 June 2018? (A) A credit balance of $96 (B) A debit balance of $96 (C) A credit balance of $528 (D) A debit balance of $528
A credit balance of $96
A debit balance of $96
A credit balance of $528
A debit balance of $528
Which of the following best describes a trial balance? (A) Is the final account in the books (B) Shows all the asset balances (C) Is a list of balances on the books (D) Discloses the financial position of a business
Is the final account in the books
Shows all the asset balances
Is a list of balances on the books
Discloses the financial position of a business
From the following information you are to ascertain the amount of capital. Premises, $55,000, motor vehicles, $17,800, inventory, $6,450, accounts receivable, $3,720, bank, $1,110, accounts payable, $4,000, loan from D. Allen, $10,000.
Which of the following is correct? (A) Capital is reduced by a loss. (B) Profit does not affect capital. (C) If there is no profit, there is no capital, (D) A loan received will reduce capital.
Capital is reduced by a loss.
Profit does not affect capital.
If there is no profit, there is no capital,
A loan received will reduce capital.
Which of the following should not be called ‘Purchases’? (A) Purchase of a motor van for use by a business (B) Goods bought on credit (C) Goods bought for cash (D) Items bought for the prime purpose of resale
Purchase of a motor van for use by a business
Goods bought on credit
Goods bought for cash
Items bought for the prime purpose of resale
