23 May 2022 POA Lesson

What is the expanded accounting equation?

• Assets=Liabilities+Equity

• Assets-expense-drawing=Liabilities-capital-income

• Assets+expense+drawings=Liabilities+capital+income

• Assets-liabilities-drawing= Capital+income+expense

Which of the following is a credit account?

• Trade receivable

• Trade payable

• Cash at Bank

• Drawings

What element is sales revenue?

• Expense

• Current Asset

• Current Liability

• Income

Which of the following is Long-Term Borrowings?

• Bank overdraft

• 10-years loan from ABC bank

• Interest on 10-years loan from ABC bank

• Cash at bank

Office equipment is a debit or credit account?

• Debit

• Credit

Drawings is a debit or credit account?

• Credit

• Debit

Trade payable is a debit or credit account?

• Debit

• Credit

Interest from bank is a debit or credit account?

• Debit

• Credit

Inventory is a debit or credit account?

• Credit

• Debit

Trade receivable is a debit or credit account?

• Credit

• Debit