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- 1. Multiple Choice
What are assets?
what you owe other parties
The items your company owns that can provide future economic benefit
company's value and equity
going out of business
- 2. Multiple Choice
Capital includes cash or other types of assets that are introduced into the business by the owners
True
False
- 3. Multiple Choice
Which of these are examples of liability?
Cash
Inventory
Bank debt
Taxes owed
Machinery
- 4. Multiple Choice
Choose the correct double entry rule!
Capital =assets +liability
Liability =assets +capital
Asset =liability +capital
Asset =liability - capital
- 5. Multiple Choice
What is accounting?
Represents owner's claims upon a business net assets
Further process the book-keeping information provided by the book-keeper
Trade payables and trade receivables
Things which we cannot see & touch
- 6. Multiple Choice
Define liability!
Amounts business receive by owner
The amount of inventory in a business
The amount we received from a debtors
The amount owed by the business to outsiders
- 7. Multiple Choice
Cross out the intangible assets!
trademarks
Cash
patents
copyrights
Inventory
- 8. Multiple Choice
Pick the feature of current assets!
Bought for resale
Not for resale
Debts which are more than 1 year
Used for operation of business
- 9. Open Ended
What is a feature of capital?
- 10. Multiple Choice
How does double entry system work?
When Asset increase =credit
When asset decrease=debit
When Asset increase =debit
When asset decrease =credit
When liability and capital increases =debit
When liability and capital decrease =credit
When liability and capital increases =credit
When liability and capital decrease =debit
- 11. Multiple Choice
Double entry for expenses always.......
Debit
Credit
- 12. Multiple Choice
Double entry for income always........
Credit
Debit
- 13. Multiple Choice
Which of these (debit) in double entry for inventory?
Purchase return
Sales
Purchase
- 14. Multiple Choice
Double entry for drawings.......
Credit
Debit
- 15. Multiple Choice
If the business sold good on credit to Sam, which account will be credited?
Sales
Purchase
Bank
Cash
Sales return
- 16. Multiple Choice
Assets=Liabilities-Owner's Equity is the accounting equation
True
False
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