SECTION A Underline the correct answer. 1 What can the total resources supplied to a business by its owner be described? A Assets B Liabilities C Purchases D Capital 2 Bought goods on credit for $ 500. What would be the effect of this transaction? A Stock increases and trade payables decreases. B Stock increases and trade payables increases. C Stock decreases and trade payables increases. D Stock decreases and trade payables decreases. 3 A firm pays cash to suppliers. What is the effect on firm's Assets and Liabilities? Assets A Increase B Increase Decrease C Decrease Increase D Decrease Liabilities Increase Decrease 4 Which group only contains non -current assets? A Buildings, premises, machinery. B Land, cash, premises. C Land, inventory, loan. D Motor van, furniture, trade receivables 5 Assets are equal to: @ Hithadhoo School/ Dept. of Business Studies FTT- 2014/ G- 8/ Accounting/ Page 1 of 14
A Capital + Liabilities B Liabilities - Capital C Capital - Liabilities D None of these 6 Calculate liabilities? Assets 20000 Liabilities ? Capital 17300 A 2000 C 1700 B 2700 D 3300 7 A trade receivable, Waheed pays us by cheque $ 200. What is the required entr Debit A Bank B Bank C Waheed D Trade receivable Bank Credit Waheed Trade payable Bank 8 Which of the following is correct? Effect Action A Increase bank B Increase capital Debit capital account C Decrease cash Debit cash account D Decrease machinery Debit machinery account Debit bank account 9 Credit sale of goods to Raheem is: A Debited to sales and credited to Raheem B Debited to Raheem and credited to cash C Debited to Raheem and credited to sales D None of the above @ Hithadhoo School/ Dept. of Business Studies FTT- 2014/ G- 8/ Accounting/ Page 2 of 14
10 A tader gives the following information . Calculate the amount of capital? $ Premises 8000 Cash 4000 Trade payables 2200 A $ 5000 C $ 9800 B $ 4000 D $ 10800. 11 Which of the following is correct ? Assets $ Liabilities $ Capital $ A 3200 2200 1200 B 11000 4600 6400 C 8000 3000 11000 D 12000 4000 10000 12 Which entry records bought goods on credit from Nishad ? Account debited A Bank B Purchase C Nishad D Purchases @ Hithadhoo School/ Dept. of Business Studies FTT-2014/ G- 8/ Accounting/ Account credited Nishad Nishad Revenue Bank Page 3 of 14