According to double-entry rules, if a liability decreases, .......
A. Liability account will be debited or credited
B. Liability account will be debited and credited
C. Liability account will be credited
D. Liability account will be debited
You are presented with the following data:
Assets 13,970
Capital 2,934
Liabilities 11,576
What comment would you make?
A. the two sides are not equal. One figure must be incorrect
B. the equation is correct
C. the two sides are equal
D. Capital is correct
Which item below is not an asset?
A. Motor vehicle
B. Creditor
C. Debtor
D. Cash
‘Balance sheet’ is .........
A. resources or items owned by the business
B. a type of financial statement
C. record of transactions by categories
D. the amount of the owner’s stake in the business.
A ....... is someone to whom you owe money after you buy on credit.
A. Loan
B. Debtor
C. Liabilities
D. Creditor
The capital equation is:
A. Assets less liabilities equals capital
B. Capital equals assets and liablities
C. Assets equals capital and liabilities
D. Liabilities equals assets less capital
A general term for amounts owing to persons other than the owner is ......
A. reditor
debtor
B. creditor
C. liabilities
D. loan
According to double-entry rules, if an asset increases, .......
A. asset account will be debited or credited
B. asset account will be credited
C. asset account will be debited
D. asset account will be debited and credited
In the accounting equation, ........
A. Total of assets is always bigger than total of capital and liabilities
B. The two sides will never be equal to one another
C. Total of assets is always smaller than total of capital and liabilities
D. The two sides will always be equal to one another
In the following transaction: ‘The owner puts a further amount into the business by cheque’, which account is debited and which account is credited?
A. debit the owner’s account & credit bank account
B. debit the owner’s account & credit capital account
C. debit bank account & credit capital account
D. debit bank account & credit the owner’s account
‘Capital’ is ................
A. record of transactions by categories
B. a type of financial statement
C. the amount of the owner’s stake in the business.
D. resources or items owned by the business
A .... is someone who owes you money after you sell him/ her on credit.
A. loan
B. debtor
C. creditor
D. liabilities
........... is a general term for activities of the business.
A. purchases
B. transactions
C. capital
D. sales
The word ......... in the heading of the balance sheet is linked to the idea of the snapshot photograph.
A. at
B. month
C. equal
D. with
In the transaction: ‘Received a cheque of £1,200 from A Smart in full settlement of debt of £1,212’. What entries in the Cash book are done?
A. Cr Discount received £12 & Dr Bank £1,200
B. Dr Discount allowed £12 & Dr Bank £1,212
C. Dr Discount allowed £12 & Dr Bank £1,200
D. Dr Bank £1,200
From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount; then return goods to S Letts at list price £40’. How much will the business record in Return Outwards account?
From the transaction: ‘K Devine returns to us goods with a list price of £150. No discount was previously made.’ In what accounts will it be recorded?
A. Cr K Devine £150 & Dr Returns Outwards £150
B. Dr K Devine £150 & Cr Returns Outwards £150
C. Dr Returns Inwards £150 & Cr K Devine £150
D. Cr Returns Inwards £150 & Dr K Devine £150
From the transaction: ‘Credit purchase from A John at list price of £880, subject to 20% trade discount’. How much will the business record into Day book?
A. £880
B. £740
C. £704
D. £176
From Sales Day book, detail is transferred promptly to .......... account in Sales Ledger
A. Cash/ Bank
B. Creditor’s
C. Debtor’s
D. Sales
From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount; then return goods to S Letts at list price £40’. How much will the business finally owe S Letts?
A. £4
B. £210
C. £36
D. £189
