1. Accounting Principles Quiz

2. The Accounting Equation is A. Assets = Capital +Liabilities B. Assets = Capital -Liabilities C. Assets + Capital =Liabilities A

3. Assets are A. Amounts owed by the business B. Amounts owned by the business C. Amounts owed by the owner B

4. A Balance Sheet shows the state of the business A. At regular intervals B. After six months C. At one moment in time C

5. A Trial Balance must balance A. Always B. Sometimes C. Never A

6. Which is an example of a liability? A. Cash B. Debtor C. Loan C

7. What is the process called which involves making two entries in the accounts for each transaction? A. Double entry B. Ratio analysis C. Balancing A

8. In a credit transaction when does the buyer pay for the goods? A. Immediately B. After 30 days C. At the year end B

9. The credit side is the A. Left side B. Right side C. Off side B

10. The Gross Profit is shown in the A. Profit and loss account B. Balance sheet C. Trading account C

11. Ratio Analysis is the process which is undertaken to A. Interpret information B. Check information C. Summarise information A

12. What are people who owe the business money called? A. Creditors B. Suppliers C. Debtors C

13. A Cash Book which shows cash, bank and discount has how many columns? A. Two B. Four C. Three C

14. The discount which is given to debtors (customers) is called? A. Trade discount B. Discount allowed C. Discount received B

15. Cash discount is recorded in the books A. No B. Yes C. Rarely B

16. What is the name of the financial statement which shows if a business has made a profit or a loss? A. Balance sheet B. Trading and profit and loss account C. Income and expenditure account B

17. Which book is a day book and a ledger? A. Cash book B. Sales returns day book C. Purchase day book A

18. Which item is not an expense? A. Motor vehicle B. Rent C. Wages A

19. Capital is money put into the business by whom? A. Creditor B. Debtor C. Owner C

20. What are goods purchased for resale called? A. Sales B. Purchases C. Income B