Intro to Accounting Quiz

Which of the following versions of the accounting equations is correct?

• A + OE = L

• A + L = OE

• A = L + OE

• A = L - OE

Which of the following is not an example of an expense?

• Electricity

• Wages

• Loan from ABC Bank

• Salaries

Which of the following is an example of an asset?

• Fees earned

• Inventories

• Motor vehicle maintenance

• Capital

The nature of GST Paid is?

Which is the wrong account involved in the following transaction?

Bought stationary from T Villani for $100 cash.

• Cash at Bank

• GST Collected

• Stationary

When an owner withdraws money from a business the account involved is?

Liabilities (295,000)

Assets (455,000)

Owner's Equity?

Owner's Equity (275,500)

Assets (450,000)

Liabilities?

Which of the following is NOT an objective of accounting?

• To ensure accountability

• To provide information to interested parties for decision-making

• To aid in financial statements

• To evaluate the performance of the business

Revenues e.g. sales, have a credit nature as they increase the value of owner's equity, and Expenses e.g. electricity, have a debit nature as they decrease the owner's equity value.

• False

• True