The account ‘T Smith’ has 4 transactions during July, Year 4, including 2 debit entries with £50 & £80 and 2 credit entries with £170 and £230. How much is the balance of this account at the end of July, Year 4?
A. £270 Dr
B. £270 Cr
C. £170 Dr
D. £170 Cr
4 types of personal accounts include capital, supplier, customer, and ..........
A. drawings
B. sales
C. bank
D. cash
‘Capital’ is ................
A. the amount of the owner’s stake in the business.
B. a type of financial statement
C. resources or items owned by the business
D. record of transactions by categories
The word ......... in the heading of the balance sheet is linked to the idea of the snapshot photograph.
A. with
B. at
C. month
D. equal
In the accounting equation, ........
A. The two sides will always be equal to one another
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. Total of assets is always bigger than total of capital and liabilities
A general term for amounts owing to persons other than the owner is ......
A. liabilities
B. reditor
debtor
C. loan
D. creditor
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 the owner’s account
D. debit bank account & credit capital account
A ....... is someone to whom you owe money after you buy on credit.
A. Loan
B. Liabilities
C. Creditor
D. Debtor
According to double-entry rules, if a liability decreases, .......
A. Liability account will be debited
B. Liability account will be credited
C. Liability account will be debited or credited
D. Liability account will be debited and credited
Which item below is not an asset?
A. Creditor
B. Debtor
C. Motor vehicle
D. Cash
According to double-entry rules, if an asset increases, .......
A. asset account will be debited or credited
B. asset account will be debited
C. asset account will be credited
D. asset account will be debited and credited
T-type Ledger accounts has the following format:
A. two-sided account with debit side on the left and credit side on the right
B. two-sided account with credit side on the left and debit side on the right
C. one-sided account only with credit side
D. One-sided account only with debit side
