Accounting Quiz 09

What is equity?

liability of a business

Owner’s claim on total liabilities

Owner’s claim on total assets

Cash from the business

Identify the asset from the following:

Cash and cash equivalent

Notes payable

Bank loan

Creditors

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

Appreciation

Drawings

Depreciation

Outflow of cash

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

Rent income account

Rent expenses account

Insurance expenses account

Cash account

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

Posting

Entry making

Recording

Transferring

Net loss occurs when______________?

Expenses=Income

Expenses are greater than Income

Expenses are less than Income

Liabilities are greater than income

Identify the nominal account

Rent expenses account

Building account

Creditors account

Machinery account

What is the basic accounting equation?

Assets+ liabilities =Capital

Liabilities+Capital

Capital+assets=liabilities

Capital+Liabilities=Assets

Double entry implies that

Recording entries in journal

Recording every transaction in books

Recording two aspects of every transaction

Recording entries in Ledger account

Which of the following is a liability?