Accounting Quiz 09

Identify the asset from the following:

Bank loan

Notes payable

Creditors

Cash and cash equivalent

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

Appreciation

Outflow of cash

Depreciation

Drawings

What is the basic accounting equation?

Assets+ liabilities =Capital

Capital+assets=liabilities

Liabilities+Capital

Capital+Liabilities=Assets

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

Entry making

Transferring

Recording

Posting

Double entry implies that

Recording entries in Ledger account

Recording every transaction in books

Recording two aspects of every transaction

Recording entries in journal

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

Rent expenses account

Rent income account

Insurance expenses account

Cash account

Net loss occurs when______________?

Expenses are greater than Income

Expenses are less than Income

Expenses=Income

Liabilities are greater than income

Identify the nominal account

Building account

Machinery account

Creditors account

Rent expenses account

Which of the following is a liability?

Cash

Equipment

Debtors

Creditors

What is equity?

Owner’s claim on total assets

liability of a business

Owner’s claim on total liabilities

Cash from the business