REVISION - GRADE 7

Which of the following is NOT a part of the accounting process?

• a) Selling

• b) Recording

• c) Reporting

• d) Analyzing

What does the accounting equation represent?

• a) The relationship between assets, liabilities, and capital

• b) The relationship between assets and expenses

• c) The relationship between income and expenses

• d) The relationship between liabilities and expenses

Book-keeping involves detailed recording of all __________ transactions of a business.

The liability represents the amount owed by the business to the owners

• TRUE

• FALSE

'Bought goods on credit $5600 from Ahmed' .

Identify the debit and credit account for the transaction

• Bought goods - Dr

  Ahmed - Cr

• Inventory - Dr

  Ahmed - Cr

• Purchases - Dr

  Ahmed - Cr

• Ahmed - Dr

  Purchases - Cr

Amy provided the following information at the end of March 2022

Motor vehicle - 10,000

Cash at bank - 9000

Bank overdraft - 5000

Trade receivables - 2300

Calculate capital?

• 16200

• 16300

• 11700

• 11900

If Total assets of the businesses are $7800, and total liabilities are $3400, what would be the capital?

• $8900

• $11000

• $11200

• $4400

In the double entry system, every transaction affects at least how many accounts?

• one

• two

• three

• four

When a business pays rent for the office space, which account is debited?

• Rent Expense
• Accounts Payable
• Utilities Expense
• Office Supplies

Which of the following is an example of a non-current asset?

• Bank overdraft

• Cash

• Inventory
• Property, plant, and equipment