when the bank lets business use more money than in account

Which of these is NOT true about a liability?

It includes something the business is owed

Which of the following is the Accounting Equation?

Assets=Liabilities + Owners Equity

Which of the following is an example of a liability of a small plumbing business?

A loan taken out to buy new plumbing tools

Which of these is NOT true for an asset?

It includes money the business owes

A 'credit customer' is someone who

you allow to received goods from you and pay you later

If you buy stock from a wholesaler, and they allow you to pay later

The wholesaler is a creditor for you, You are a debtor for the wholesaler

Which of the following is an example of an asset of a small plumbing business?

Money owed to the company for sales

Which of the following is an expense of the plumbing business

This month's repayment on loan taken out to buy the new ute

Tina has taken out a business loan. $1500 will be repaid in 12 mths, with $12,500 still owing.

Tina's current liability is $1500, Tina's non-current liability is $12,500

What is the correct order of the accounting process?

source documents, recording, reporting, advice

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Introduction to Accounting

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Accounting introductory terms

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Questions 14

Answers

1
A creditor is someone who owes the business money
False
True
2
An overdraft is
when the business takes out a loan with regular repayments
when the business uses its credit card
when the bank lets business use more money than in account
3
Which of these is NOT true about a liability?
The business will have to pay for it in the future
It includes something the business is owed
It includes something the business owes
It arose from past events
4
Which of the following is the Accounting Equation?
Assets = Liabilities
Owners Equity ⩾ Assets + Liabilities
Assets+Liabilities= Owners Equity
Assets=Liabilities + Owners Equity
5
Which of the following is an example of a liability of a small plumbing business?
New plumbing tools
A mortgage on the business owner's house
Money owed to the plumber for installing a new bathroom
A loan taken out to buy new plumbing tools
6
A source document when the business receives cash is
a sales invoice
A cheque butt
a receipt
7
Which of these is NOT true for an asset?
It includes items the business already owns
It includes something the business is owed
The business will get some economic benefit from it
It includes money the business owes
8
A 'credit customer' is someone who
you allow to received goods from you and pay you later
pays you using their debit card
lends you money
pays you using their credit card
9
If you buy stock from a wholesaler, and they allow you to pay later
You are a creditor for the wholesaler
The wholesaler is a debtor for you
The wholesaler is a creditor for you
You are a debtor for the wholesaler
10
A debtor is someone who owes the business money
False
True
11
Which of the following is an example of an asset of a small plumbing business?
A mortgage on the owner's house
The owner's house
Money owed to the company for sales
Money borrowed to buy a new company truck
12
Which of the following is an expense of the plumbing business
The new ute
This month's repayment on loan taken out to buy the new ute
Mortgage repayments
Sale of new toilets seats to a customer
13
Tina has taken out a business loan. $1500 will be repaid in 12 mths, with $12,500 still owing.
Tina's current liability is $1500
Tina's current liability is $14,000
Tina's non-current liability is $14,000
Tina's non-current liability is $12,500
14
What is the correct order of the accounting process?
source documents, recording, reporting, advice
advice, source documents, reporting, recording
Recording, source documents, reporting, advice
recording, reporting, source documents, advice

Introduction to Accounting Flashcards | StudBud