Accounting Quiz 09

Identify the asset from the following:

Creditors

Notes payable

Cash and cash equivalent

Bank loan

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

Cash account

Rent expenses account

Rent income account

Insurance expenses account

Double entry implies that

Recording two aspects of every transaction

Recording entries in journal

Recording entries in Ledger account

Recording every transaction in books

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

Entry making

Recording

Transferring

Posting

Net loss occurs when______________?

Expenses=Income

Liabilities are greater than income

Expenses are less than Income

Expenses are greater than Income

What is the basic accounting equation?

Assets+ liabilities =Capital

Liabilities+Capital

Capital+assets=liabilities

Capital+Liabilities=Assets

What is equity?

liability of a business

Owner’s claim on total assets

Owner’s claim on total liabilities

Cash from the business

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

Appreciation

Outflow of cash

Drawings

Depreciation

Which of the following is a liability?

Debtors

Creditors

Equipment

Cash

Identify the nominal account

Building account