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    PDF - BASIC ACCOUNTING-CHAPTER-1 (Questions)

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    James Ygn
    This document contains 10 multiple choice questions testing understanding of basic accounting concepts like assets, liabilities, owner's equity, and the accounting equation. It asks the reader to identify which items are considered assets or liabilities, calculate values based on given financial information, and determine the accuracy of statements about business financial position.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    PDF - BASIC ACCOUNTING-CHAPTER-1 (Questions)

    Uploaded by

    James Ygn
    1K views3 pages
    This document contains 10 multiple choice questions testing understanding of basic accounting concepts like assets, liabilities, owner's equity, and the accounting equation. It asks the reader to identify which items are considered assets or liabilities, calculate values based on given financial information, and determine the accuracy of statements about business financial position.

    Original Description:

    Basic accounting chapter 1 question for beginner

    Original Title

    PDF_BASIC ACCOUNTING-CHAPTER-1 (Questions)

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    This document contains 10 multiple choice questions testing understanding of basic accounting concepts like assets, liabilities, owner's equity, and the accounting equation. It asks the reader to identify which items are considered assets or liabilities, calculate values based on given financial information, and determine the accuracy of statements about business financial position.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views3 pages

    PDF - BASIC ACCOUNTING-CHAPTER-1 (Questions)

    Uploaded by

    James Ygn
    This document contains 10 multiple choice questions testing understanding of basic accounting concepts like assets, liabilities, owner's equity, and the accounting equation. It asks the reader to identify which items are considered assets or liabilities, calculate values based on given financial information, and determine the accuracy of statements about business financial position.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    10

    1.7 EXERCISE (1)

    1) Which of the following items would not fall under the definition of an asset?
    a) Land
    b) Machinery
    c) Cash
    d) Debtors
    e) All of the above qualify as assets.

    2) Which of the following items would fall under the definition of a liability?
    a) Land
    b) Cash
    c) Tax owed
    d) Debtors
    e) None of the above

    3) Which of the following statements are false?


    a) A liability is a debt for your business.
    b) The owner’s equity is equal to the value of assets in the business.
    c) The accounting equation shows how much of your assets belong to the owner,
    and how much “belong” to people outside the business.
    d) If you cannot work out a value for an item that will bring you future benefits, then
    you cannot keep this as an asset in your records.
    e) None of the above.

    4) A business has the following items in it:


    Land $100,000
    Machinery $20,000
    Cash $10,000
    Debt 0
    What is the value of the owner’s equity?
    a) $100,000
    b) $120,000
    c) $110,000
    d) $130,000
    e) None of the above.

    Mr James-accounting
    11

    5) A business has the following items in it:


    Land $100,000
    Machinery $20,000
    Cash $10,000
    Loan $50,000
    What is the value of the owner’s equity?
    a) $50,000
    b) $100,000
    c) $80,000
    d) $130,000
    e) None of the above.

    6) A business has the following items in it:


    Assets $300,000
    Owner’s equity $60,000
    What is the value of the liabilities in this business?
    a) $240,000
    b) $360,000
    c) $300,000
    d) $60,000
    e) None of the above.

    7) A business has the following items in it:


    Owner’s equity $60,000
    Total liabilities $140,000
    What is the value of the assets in this business?
    a) $60,000
    b) $80,000
    c) $140,000
    d) $200,000
    e) None of the above.

    8) A business has the following items in it:


    Land $150,000
    Machinery $80,000
    Cash $20,000
    Owner’s equity $100,000
    Loan $50,000

    Mr James-accounting
    12

    What is the value of the creditors?


    a) $100,000
    b) $200,000
    c) $300,000
    d) $400,000
    e) None of the above.

    9) A business has the following items in it:


    Vehicles $60,000
    Debtors $20,000
    Cash $30,000
    Owner’s equity $100,000
    Loan $50,000
    Creditors $50,000
    What is the value of the land?
    a) $100,000
    b) $200,000
    c) $110,000
    d) $90,000
    e) None of the above.

    10) Which of the following statements are true?


    a) A business whose liabilities are greater than its assets has a bad financial position.
    b) A business whose liabilities are greater than its owner’s equity has a bad financial
    position.
    c) A business whose assets are greater than its owner’s equity has a bad financial position.
    d) a) and b).
    e) All the above.

    Mr James-accounting

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