WorksheetsFINANCIAL ACCOUNTING WK 9
Total questions: 10
Worksheet time: 5mins
Charlotte goes to a store and picks up some groceries. She decides to pay for them later, after receiving her paycheck. This transaction is classified as which type of transaction?
It is a cash transaction
It is a barter transaction
It is a credit transaction
It is a loan transaction
In a credit transaction, which account is credited when goods worth N300 are sold to Olatunji on credit?
Olatunji account
Sales account
Cash account
Purchase account
What is the main characteristic of a credit transaction?
Payment is made in cash immediately.
Settlement of money is deferred to a later date.
Goods are not exchanged.
Only services are provided.
Michael just purchased a new piece of vehicle for his business, which is an increase in assets. According to the double entry principle, which account is debited for this transaction?
Capital account
Vehicle account
Expense account
Income account
What is the effect of Mr. Peter starting a business with #100,000 cash?
The business has #100,000 as capital and cash increases by #100,000.
The business loses #100,000.
Mr. Peter owes #100,000 to the business.
The business has no change in its financial position.
What is the effect on the bank account when a motor vehicle is bought for #60 and paid by cheque?
The bank account increases by #60
The bank account decreases by #60
The bank account remains unchanged
The bank account increases by #30
Which side of the single-column cash book is considered the giving side?
Debit side
Both sides
Credit side
None of the above
In a Single Column Cash Book, what does the "Receipts" section represent?
Money paid out
Money received
Goods sold
Goods purchased
If money is going out of the business, where should the transaction be recorded?
On the debit side
On the asset side
On the credit side
On the liability side
A business receives cash from a customer. According to the steps provided, how should this transaction be recorded?
On the credit side, because money is going out
On the debit side, because money is coming in
On the liability side, because it is a future obligation
On the asset side, because it increases assets
