Question 1: ASSETS ARE WORTH $90,000 WHEREAS LIABILITIES ARE WORTH OF $30,000. CAN YOU CALCULATE THE AMOUNT OF EQUITY? a: $60,000 b: $120,000
Question 2: EQUITY CAN BE CALCULATED AS: a: OPENING CAPITAL + FRESH CAPITAL + PROFIT - LOSS - DRAWINGS b: OPENING CAPITAL - FRESH CAPITAL + PROFIT - LOSS + DRAWINGS
Question 3: any thing that is taken out from the business for the personal use of the owner is called a: drawings b: capital
Question 4: Opening capital $100,000 Fresh capital 10,000 profit 20,000 drawings 5,000 Calculate the amount of equity? a: $125,000 b: $135,000
Question 5: Opening capital $100,000 Fresh capital 10,000 Loss 20,000 drawings 5,000 Calculate the amount of equity? a: $85,000 b: $105,000
Question 6: equity $400,000 Fresh capital 10,000 Loss 20,000 drawings 5,000 Calculate the amount of opening capital? a: $420,000 b: $415,000
Question 7: Which of the following characteristics is not true of an incorporated business? a: It is managed by the shareholders b: It is liable for tax on any profits earned
Question 8: Which of the following characteristics is considered to be an advantage of a limited company? a: Low level of regulation b: Limited liability of shareholders
Question 9: Which of the following would not normally be found in the balance sheet of a sole-trader business? a: Interest payable b: interest expense
Question 10: According to IAS 1, financial statements should consist of: a: Income statement, balance sheet and notes b: Income statement, balance sheet, statement of changes in equity, statement of cash flows, notes
Question 11: Liabilities are: a: Amounts due at the period end to third party b: Amounts due at the period end to shareholders
Question 12: Which of the following statements gives the best definition of the objective of accounting? a: To calculate the taxation that must be paid to the government b: To provide useful information for the users
Question 13: Which of the following is an asset of a firm? a: Money owed by the firm to one of its suppliers in respect of goods purchased on credit b: Machinery owned by the firm
Question 14: Which of the following is a liability of the business? a: Tax bill outstanding at the end of the year b: Tax charge in the year
Question 15: Which of the following is a liability of a firm? a: money owed to the firm by its credit customers b: money which the firm has borrowed and has not yet repaid
