Have an account?
Skip to Content
Build your own quiz
25 questions
Show Answers
See Preview
- 1. Multiple Choice
Cash at Bank is ...
a liability
an asset
an expense
equity
- 2. Multiple Choice
Double entry in accounting means there must be________ entries for every transaction?
two
Three
six
one
- 3. Multiple Choice
A general Leger/T) has a ______ and _______ side.
cash receipt and debtors
debit and payments
debit and credit
creditors and debtors
- 4. Multiple Choice
Assets increase on the ________ side?
subsidiary
T-account
credit
debit
- 5. Multiple Choice
owners equity decreases on the _________ side?
credit
debit
payments
liability
- 6. Multiple Choice
________ are debts of the business?
assets
liabilities
owners equity
vehicles
- 7. Multiple Choice
Equipment are an example of an/a ______?
loan
asset
liability
owners equity
- 8. Multiple Choice
when the owner takes money out of the business's account it is called _________?
credit
drawings
debt
borrowing
- 9. Multiple Choice
water and electricity is an/a __________?
credit
asset
expense
income
- 10. Multiple ChoiceThe period of time covered by an accounting report is the accounting period.TrueFalse
- 11. Multiple ChoiceAny amounts owed by a business and reported on the balance sheet are referred to as ________________.assetsliabilitiesprofitexpenses
- 12. Multiple ChoiceAn increase in owner's equity resulting from the operation of a businessassetexpensewithdrawlrevenue
- 13. Multiple Choice
The accounting period of a business is separated into activitiess that help the business keep its accounting records in an orderly fashion.
Accounting Period Cycle
Source Document
Fiscal Year
None of the Above
- 14. Multiple ChoiceJeff's Construction, LLC bought a piece of equipment in 2001 for P 10,000. Today this piece of equipment is only worth P 2,000. Jeff would still report the equipment at its purchase price of P 10,000, less depreciation, even though its current fair market value is only P 2,000.Historical PrincipleBusiness EntityAccrual PrincipleAdequate Disclosure Principle
- 15. Multiple ChoiceConcept: Financial information is reported for a specific period of time on financial statements.Matching Expenses with RevenueAccounting Period CycleBusiness Entity
- 16. Multiple Choice
Concept: a business's records should never be mixed with an owner's personal records and reports
adequate disclosure
business entity
objective evidence
going concern
- 17. Multiple Choice
Concept: Financial statements are prepared with the expectation that business will remain in operation indefinately
going concern
materiality
accounting period cycle
matching revenue with expenses
- 18. Multiple Choice
Which of the following is correct?
Owner’s Equity = Liabilities + Assets
Liabilities = Assets + Owner’s Equity
Assets = Liabilities + Owner’s Equity
Assets = Owner’s Equity
- 19. Multiple Choice
Which of the following is correct about double entry system of accounting?
Every business transaction brings at least two financial changes in business.
Financial changes are recorded as debits or credits in two or more accounts.
Every debit entry has a corresponding credit entry.
All of the above
- 20. Multiple Choice
Which of the following business has unlimited liability
Sole trader
Limited Liability Partnership
Private Limited Company
Public Limited Company
- 21. Multiple Choice
Which type of business organisation has the following characteristics?
- conducts business separate from its owners
- the owners have limited liability
- the organisation is a taxable entity
Sole trader
Partnership
Company/corporation
None of the above
- 22. Multiple Choice
A partnership business normally owned by 2 to 50 partners
True
False
- 23. Multiple ChoiceAnything of value that is owned by the company (such as cash, accounts receivables, vehicles, etc.) are reported on the balance sheet and are referred to as _______________.assetsliabilitiesprofitincome
- 24. Multiple Choice
The accounting equation must always be
balanced
uneven
zero
equal to the square root of 5
- 25. Multiple Choice
For an investor, personal and business money are put together and not kept separate.
TRUE
FALSE
- Answer choicesTagsAnswer choicesTags