MINI QUIZ

Question 1

A customer owes money to the business

Answer 1

Asset

Question 2

A football club’s gate receipts

Answer 2

Income

Question 3

Petrol used in a business vehicle

Answer 3

Expense

Question 4

Office furniture

Answer 4

Asset

Question 5

Furniture sales made by Next plc

Answer 5

Income

Question 6

An outstanding telephone bill for business premises

Answer 6

Liability (and Expense)

Question 7

A long-term loan taken out by the business

Answer 7

Liability

Question 8

Cash in the business bank account

Answer 8

Asset

Question 9

Wages paid to employees

Answer 9

Expense

Question 10

The amount of money the owner invested in the business

Answer 10

Capital

Question 11

Are assets and expenses credit or debit balances?

Answer 11

Debit balances

Question 12

Are capital, liabilities and income credit or debit balances?

Answer 12

Credit balances

Question 13

What will a debit entry do in the accounting records?

Answer 13

Increase assets and expenses, or decrease income and liabilities

Question 14

What will a credit entry do in the accounting records?

Answer 14

Decrease assets and expenses, or increase income and liabilities

Question 15

Purchased vehicle for cash

Answer 15

Dr vehicles, Cr bank/cash

Question 16

Purchased machinery on credit from Smith

Answer 16

Dr machinery, Cr creditors/payables

Question 17

Introduced capital

Answer 17

Dr bank, Cr capital

Question 18

Received cheque from debtor Jones

Answer 18

Dr bank, Cr debtors/receivables

Question 19

Paid creditor Brown

Answer 19

Dr creditors/payables, Cr bank