Accounting Quiz 09

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

Cash account

Insurance expenses account

Rent expenses account

Rent income account

What is the basic accounting equation?

Capital+assets=liabilities

Capital+Liabilities=Assets

Assets+ liabilities =Capital

Liabilities+Capital

Which of the following is a liability?

Creditors

Debtors

Equipment

Cash

Identify the nominal account

Rent expenses account

Machinery account

Creditors account

Building account

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

Outflow of cash

Appreciation

Depreciation

Drawings

Double entry implies that

Recording entries in Ledger account

Recording two aspects of every transaction

Recording entries in journal

Recording every transaction in books

Identify the asset from the following:

Notes payable

Creditors

Cash and cash equivalent

Bank loan

Net loss occurs when______________?

Liabilities are greater than income

Expenses are greater than Income

Expenses are less than Income

Expenses=Income

What is equity?

Cash from the business

Owner’s claim on total assets

Owner’s claim on total liabilities

liability of a business

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

Transferring

Recording

Posting

Entry making