WorksheetsGrade 8/9 Accounting Basics Quiz
Total questions: 15
Worksheet time: 8mins
What is prepared by a book-keeper?
A Analyzing accounts
B cash book
C income statement
D statement of financial position
B
C
A
A
What is the correct accounting equation?
Assets = Liabilities - Equity
Assets + Liabilities = Equity
Assets = Liabilities + Equity
Liabilities = Assets + Equity
What is the difference between debits and credits in accounting?
Debits are only used for recording expenses, while credits are only used for recording assets.
Debits are used to record increases in assets and expenses, while credits are used to record decreases in assets and expenses.
Debits and credits are interchangeable and can be used to record any type of transaction.
Debits are used to record decreases in assets and expenses, while credits are used to record increases in assets and expenses.
What is a cash book used for in accounting?
To record all employee salaries in a business.
To record all credit card transactions in a business.
To record all inventory transactions in a business.
To record all cash transactions in a business.
Which item is an asset?
A an amount owing by credit customers
B an amount owing to credit suppliers
C bank overdraft
D loans
A
B
C
D
Mahela is a trader. He took goods costing $100 for his own use.
How would Mahela record this in his ledger?
Account to be debited Account to be credited
A drawings inventory
B drawings purchases
C inventory drawings
D purchases drawings
A
B
C
D
Dinesh returned goods to his credit supplier, Thisara.
How would Dinesh record this in his ledger?
Account to be debited Account to be credited
A sales returns Thisara
B purchases returns Thisara
C Thisara sales returns
D Thisara purchases returns
A
B
C
D
Explain the concept of 'trial balance' in accounting.
A statement that lists all the employees and their salaries
A report that shows the profit and loss of a company
A statement that lists all the ledger accounts and their balances to ensure that the total debits equal the total credit.
A document that summarizes the cash flow of a business
Jaswant purchased goods from Ali and paid in cash.
Which entries would Ali make in his ledger?
Account to be debited Account to be credited
A cash sales
B Jaswant sales
C sales Jaswant
D sales cash
A
B
C
D
Ben sold goods to David for $900 cash.
In which book of prime entry would David record this transaction?
A cash book
B general journal
C purchases journal
D sales journal
A
B
C
D
What is the purpose of a ledger in accounting?
To store employee contact information
To manage customer complaints
To record and summarize financial transactions of a business.
To track inventory levels
Which statement is correct?
A The accountant prepares the trial balance and the book-keeper prepares the financial
statements.
B The accountant writes up the journals and the book-keeper writes up the ledger accounts.
C The book-keeper writes up the journals and the accountant prepares the trial balance.
D The book-keeper writes up the ledger accounts and the accountant prepares the financial
statements.
A
B
C
D
What is a cheque counterfoil used for?
A to make a credit entry in the bank column of a cash book
B to make a debit entry in the bank column of a cash book
C to send a payment to a supplier
D to send proof of payment to a customer
A
B
C
D
Why does a supplier offer trade discount?
A to avoid irrecoverable debts
B to encourage bulk buying
C to encourage payment in cash
D to reward prompt payment
A
B
C
D
What are the key components of a balance sheet/Statement of Financial Position in accounting?
Debits, credits, and expenses
Assets, liabilities, and equity
Income, expenses, and revenue
Cash, inventory, and accounts receivable
