Bookkeeping

Which of the following is not an asset?

• Buildings

• Cash in hand

• Accounts receivable

• Loan

Which of the following best describes the meaning of ‘Purchases’?

• Items bought

• Goods bought on credit

• Goods bought for resale

• Goods paid by cheque

Which of the following should not be called ‘Sales’?

• Office fixtures sold

• Goods sold on credit

• Goods sold on cash

• Sale of item previously included in ‘Purchases’

Which of the following best describes a trial balance?

• It shows the financial position of a business

• It is a special account

• It shows all the entries in the books

• It is a list of balances on the books

Gross profit is_________________.

• Net profit - expenses

• Cost of goods sold + opening inventory

• Sales - purchases

• Revenue - cost of goods sold

Discount received are _____________.

• Deducted when we received cash

• Given by us when we sell goods on credit

• Deducted for us when we pay our accounts

Which of the following is considered as liabilities?

• Bank

• Bank Overdraft

• Buildings

• Property

Which of the following is correct?

• Profit does not change capital

• Profit reduces capital

• Profit increases capital

• Capital can only come from profit

Which of the following best describe a Balance Sheet?

• It shows the financial position of a business.

• It is a special account.

• It shows the profit or loss of a business.

• It is a list of balances on the books.

Gross profit is calculated in the ________.

• Trial Balance

• Balance Sheet

• Income Statement

• Cash Account