WorksheetsAccounting Quiz
Total questions: 14
Worksheet time: 7mins
What is the purpose of accounting in a business?
To create products
To record, analyze, and report financial transactions
To advertise the business
To hire employees
Which of the following is NOT an asset?
Cash
Debtors
Loan from the bank
Equipment
The accounting equation is:
Income – Expenses = Profit
Assets = Liabilities + Owner’s Equity
Sales – Cost = Profit
Debtors + Creditors = Capital
A business buys goods on credit. How does this affect the accounting equation?
Assets increase, Liabilities increase
Assets decrease, Liabilities decrease
Only Owner’s Equity changes
No effect
Which financial statement shows a business’s profit or loss?
Balance Sheet
Income Statement
Cash Flow Statement
Budget
Study the following transactions and answer the questions:*
- Transaction 1: The owner invests R50,000 into the business.
- Transaction 2: The business buys inventory for R10,000 cash.
- Transaction 3: The business sells goods for R7,000 on credit.
In Transaction 1, how much money does the owner invest into the business?
R10,000
R50,000
R7,000
R5,000
Study the following transactions and answer the questions:*
- Transaction 1: The owner invests R50,000 into the business.
- Transaction 2: The business buys inventory for R10,000 cash.
- Transaction 3: The business sells goods for R7,000 on credit.
In Transaction 2, how much does the business spend on inventory?
R5,000
R7,000
R10,000
R50,000
Study the following transactions and answer the questions:*
- Transaction 1: The owner invests R50,000 into the business.
- Transaction 2: The business buys inventory for R10,000 cash.
- Transaction 3: The business sells goods for R7,000 on credit.
In Transaction 3, how much are the goods sold for on credit?
R5,000
R7,000
R10,000
R50,000
Study the following transactions and answer the questions:*
- Transaction 1: The owner invests R50,000 into the business.
- Transaction 2: The business buys inventory for R10,000 cash.
- Transaction 3: The business sells goods for R7,000 on credit.
How does Transaction 1 affect the accounting equation?
Increases assets and liabilities
Increases assets and owner’s equity
Decreases assets and liabilities
Decreases assets and owner’s equity
Study the following transactions and answer the questions:*
- Transaction 1: The owner invests R50,000 into the business.
- Transaction 2: The business buys inventory for R10,000 cash.
- Transaction 3: The business sells goods for R7,000 on credit.
What is the effect of Transaction 3 on assets and owner’s equity?
Increases both
Decreases both
Increases assets, no effect on owner’s equity
No effect on assets, decreases owner’s equity
If the business pays a creditor R2,000, what happens to liabilities and assets?
Liabilities increase, assets decrease
Liabilities decrease, assets decrease
Liabilities decrease, assets increase
Liabilities increase, assets increase
What is the effect of purchasing equipment on credit on the accounting equation?
Assets increase, Liabilities increase
Assets decrease, Liabilities decrease
No effect on assets or liabilities
Only Owner’s Equity changes
In a business, what does a decrease in liabilities indicate?
Increased expenses
Decreased assets
Increased owner's equity
Increased financial stability
Which of the following transactions would increase owner's equity?
Purchasing inventory
Paying expenses
Receiving cash from a sale
Paying off a loan
