Accounting Quiz 09

Which of the following accounts can be classified as a real account?

Rent expenses account

Rent income account

Insurance expenses account

Cash account

Identify the nominal account

Building account

Rent expenses account

Creditors account

Machinery account

What is the basic accounting equation?

Assets+ liabilities =Capital

Capital+assets=liabilities

Capital+Liabilities=Assets

Liabilities+Capital

Transferring entries from journal to ledger account is commonly known as____________?

Entry making

Posting

Recording

Transferring

_______ the withdrawal of cash and goods by the owner of the busienss for his/her personal use?

Outflow of cash

Appreciation

Drawings

Depreciation

Net loss occurs when______________?

Liabilities are greater than income

Expenses are greater than Income

Expenses=Income

Expenses are less than Income

What is equity?

liability of a business

Owner’s claim on total liabilities

Owner’s claim on total assets

Cash from the business

Double entry implies that

Recording entries in journal

Recording every transaction in books

Recording entries in Ledger account

Recording two aspects of every transaction

Which of the following is a liability?

Debtors

Cash

Creditors

Equipment

Identify the asset from the following:

Notes payable

Cash and cash equivalent