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- 1. Multiple Choice
Interest paid on mortgage is
liability
expense
revenue
owner's equity
- 2. Multiple Choice
Drawings are
liability
expense
owner's equity (positive)
owner's equity (negative)
- 3. Fill in the Blank
A Statement of Financial Position is a list of all the ______, liabilities and owner's equity of an organisation at a particular point in time.
- 4. Multiple Choice
Capital contributions from the owner are an example of
internal sources of funds
external sources of funds
- 5. Multiple Choice
Another name for Accounts Receivable is
creditors
debtors
debitors
amounts payable
- 6. Multiple Choice
Your business decides to buy shares in BHP. Where would the share investment be recorded?
Statement of Financial Position as an asset
Statement of Financial Position as owner's equity
Statement of Profit or Loss as an expense
Statement of Profit or Loss as revenue because the business will receive dividends from the shares
- 7. Multiple Choice
The principle or concept that states that the accounting records of the business must be kept separate from the owner is known as the
Monetary principle
Accounting entity concept
Separate legal entity concept
Unlimited liability concept
- 8. Multiple Choice
The goods held for use in a service business are known as
inventories
cost of goods sold
supplies
credits
- 9. Multiple Choice
The financial statement which gives users an indication about the financial stability of the business is the
Statement of Financial Position
Statement of Profit or Loss
Statement of Cash Flows
- 10. Multiple Choice
Loan to C. Charles would be considered (select all that apply)
asset
liability
accounts payable
accounts receivable
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