T1 Revision (Sept '23)

Which of the following structures offers the owners limited liability for business debts?

• Sole trader

• Partnership

• Company

• Owner's liability is limited in all of these

Accrual accounting.....

• transactions are recorded when they happen, regardless of when cash is received or paid

• the owner's affairs are treated separately of the business

• every transaction has an equal value of debits and credits

• expenses are matched against revenues they helped create in the same accounting period

Insurance paid is a.....

• Asset

• Liability

• Revenue

• Expense

Accounts Receivable is a .....

• Asset

• Liability

• Revenue

• Expense

Accrued revenue is a .....

• Asset

• Liability

• Revenue

• Expense

Accrued wages is a .....

• Asset

• Liability

• Revenue

• Expense

What is a correct accounting equation?

• Owner's Equity = Liabilities + Assets

• Assets = Liabilities + Owner's Equity + Expenses

• Assets - Liabilities = Owner's Equity

• Revenue = Liabilities + Owner's Equity + Assets+Expenses

Assets are increased with a

• Debit

• Credit

• None of these

• All of these

Liabilities are decreased with a

• Debit

• Credit

• None of these

• All of these

Sales of merchandise or stock will be recorded as....

• Debit

• Credit

• None of these

• All of these