Book-keeping (Chapter 1 & 2)

A business prepares its accounts on the basis that it will continue to trade for the foreseeable future. Which accounting concept is being applied?

• Accounting period

• Accounting Entity

• Going Concern

• Accrual Concept

Example of internal users of accounting information.

• Government

• Suppliers

• Customers

• Employees

Cash in hand belongs to...

• Non-current Assets

• Current Assets

• Owner's Equity

• Income

Accounts Payable belongs to...

• Expenses

• Non-current Liabilities

• Current Liabilities

• Current Assets

Drawings belongs to...

• Income

• Expenses

• Current Liabilities

• Owner's Equity

Fixtures and Fittings are non-current assets.

• True

• False

Mortgage Loan is an expenses.

• True

• False

Which of the following is not an expense of a business?

• Advertising

• Commission

• Sales

• Discounts Allowed

Which of the following is an income of a business?

• Discounts Received

• Returns Outwards

• Rental

• Motor Vehicles

Interest on bank overdraft is...

• Expenses

• Income

• Owner's Equity

• Liabilities