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Basic Accounting Concepts

Total questions: 13

Worksheet time: 13mins

Name
Class
Date
1.

Is this accounting cycle correct?

a)

Yes

b)

No

2.

Which of the following is not one of the elements of the financial statements?

a)

Assets

b)

Equity

c)

Transactions

d)

Income

3.

An (a)   is defined as a present economic resource controlled by the entity as a result of past events.

4.

A current asset is a resource with a life span that is usually longer than a year.

a)

True

b)

False

5.

Which of the following is an example of a non-current asset?

a)

Cash in the bank

b)

Employees

c)

Customer that owes our business money

d)

Office computer

6.

Which of the following is not an expense?

a)

Money owed to suppliers

b)

Salaries

c)

Advertising costs

d)

Payment to the municipality for water and electricity

7.

The following is an example of a current liability:

a)

Commission received

b)

Money owed to SARS

c)

Telephone account paid to Telkom

d)

Mortgage loan

8.

(a)   is the net worth of a business.

9.

The equation(s) below represent(s) how the equity in a business is determined:

a)

Equity =

Assets – Liabilities

b)

Assets =

Equity + Liabilities

c)

Liabilities =

Assets – Equity

d)

All of the above

e)

None of the above

10.

Profit is determined by subtracting income from expenses.

a)

True

b)

False

11.

Did you understand the content that was covered during the lesson(s)?

a)

b)

c)

12.

How difficult do you expect this module to be?

a)

b)

c)

d)

13.

What mark do you expect to get for this module?

a)

Less than 30%

b)

30% - 50%

c)

50% - 60%

d)

60% - 70%

e)

More than 70%