WorksheetsMastering Principles of Accounts
Total questions: 19
Worksheet time: 10mins
What is a T-account and how is it structured?
A T-account is a tool used in accounting to represent individual accounts, structured with debits on the left and credits on the right.
A T-account is a method for calculating net income using sales data.
A T-account is a graphical representation of cash flow over time.
A T-account is a financial statement showing total assets and liabilities.
In a T-account, which side is used for debits and which for credits?
Left side for credits, right side for debits.
Both sides for debits, none for credits.
Left side for debits, right side for credits.
Right side for debits, left side for credits.
How do you record a cash sale in a T-account?
Debit Sales Revenue account and Credit Cash account.
Debit Sales Revenue account and Credit Inventory account.
Debit Cash account and Credit Sales Revenue account.
Debit Cash account and Credit Accounts Receivable account.
What is the purpose of a trial balance?
The purpose of a trial balance is to verify the equality of debits and credits in the accounting records.
The purpose of a trial balance is to assess the cash flow of the business.
The purpose of a trial balance is to prepare financial statements for investors.
The purpose of a trial balance is to calculate net income for the period.
How do you prepare a trial balance from T-accounts?
Compile invoices, categorize expenses, create a summary report, check for discrepancies.
List accounts, determine balances, record in debit/credit columns, ensure totals match.
Record daily sales, analyze cash flow, prepare financial statements, review with management.
Summarize transactions, calculate totals, list in ascending order, verify with bank statements.
What does it mean to balance off an account?
To calculate the interest accrued on an account.
To close an account and transfer its balance.
To ensure that the total debits equal the total credits in an account.
To record all transactions in a ledger.
How do you balance off a T-account with a debit balance?
Adjust the balance by adding a new debit entry.
Record a credit entry equal to the debit balance.
Record a debit entry equal to the credit balance.
Remove the existing debit entry from the account.
How do you classify accounts into assets, liabilities, and equity?
Current, Fixed, and Intangible are types of assets.
Revenue, Expenses, and Gains are the main classifications.
Short-term, Long-term, and Contingent are account categories.
Assets, Liabilities, and Equity are the three main classifications of accounts.
What is the difference between current and non-current assets?
Current assets are tangible, non-current assets are intangible.
Current assets are fixed, non-current assets are variable.
Current assets are investments, non-current assets are cash.
Current assets are short-term, non-current assets are long-term.
How do you identify errors in a trial balance?
Verify if all accounts are listed; if not, add missing accounts immediately.
Check if total debits equal total credits; if not, investigate for missing entries or calculation errors.
Ensure all transactions are recorded; if discrepancies exist, adjust entries accordingly.
Review the ledger for accuracy; if errors are found, correct them without delay.
What is the significance of the accounting equation in T-accounts?
The accounting equation tracks only revenue in T-accounts.
The accounting equation is irrelevant to T-account structure.
The accounting equation only applies to cash transactions in T-accounts.
The accounting equation ensures that all financial transactions are balanced in T-accounts.
How do you record a purchase of inventory on credit in T-accounts?
Debit Inventory, Credit Sales Revenue
Debit Cash, Credit Inventory
Debit Accounts Receivable, Credit Inventory
Debit Inventory, Credit Accounts Payable
What is the effect of a sales return on T-accounts?
A sales return credits the Sales Returns account and debits the Inventory account.
A sales return debits the Accounts Receivable account and credits the Sales account.
A sales return debits the Sales Returns account and credits the Inventory account.
A sales return debits the Cash account and credits the Sales Returns account.
A business purchased stationery for $120 cash.
Which T-accounts are affected?
Dr Stationery, Cr Cash
Dr Cash, Cr Stationery
Dr Purchases, Cr Cash
Dr Cash, Cr Purchases
A Cash Account has:
Debit side = $4,900
Credit side = $3,200
What is the balance c/d?
$1,200 Dr
$1,700 Dr
$1,700 Cr
$4,900 Dr
Goods worth $250 were sold to Lisa on credit.
What is the correct posting?
(WE SOLD TO HER)
Dr Sales | Cr Lisa
Dr Lisa | Cr Sales
Dr Purchases | Cr Lisa
Dr Cash | Cr Sales
A business pays an electricity bill of $220 by cheque.
Which is the correct posting?
Dr Electricity | Cr Bank
Dr Bank | Cr Electricity
Dr Electricity | Cr Cash
Dr Cash | Cr Electricity
The Rent Account shows:
Debit: $2,000
Credit: $0
What is the balance b/d?
The balance of the Capital Account appears on which side of the trial balance?
