Classification Of Accounts Quiz! Test

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| By Arshad.b.jumah
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Arshad.b.jumah
Community Contributor
Quizzes Created: 3 | Total Attempts: 1,545
| Attempts: 571
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  • 1/15 Questions

    Motor Vehicles

    • Asset
    • Liability
    • Income
    • Capital
    • Expense
    • Drawing
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About This Quiz

Dive into the 'Classification of Accounts Quiz! Test' to assess your understanding of key accounting concepts. This quiz covers various types of accounts including assets like cash, equipment, and motor vehicles, as well as expenses. It's perfect for learners looking to solidify their financial accounting knowledge.

Classification Of Accounts Quiz! Test - Quiz

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  • 2. 
    Cash in hand - ProProfs

    Cash in hand

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Asset
    Explanation
    Physical cash is something that the business owns

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  • 3. 
    Inventory - ProProfs

    Inventory

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Asset
    Explanation
    Goods bought for resale by the business.

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  • 4. 
    Cash at bank - ProProfs

    Cash at bank

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Asset
    Explanation
    Money kept in the bank account is owned by the business.

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  • 5. 
    Equipment - ProProfs

    Equipment

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Asset
    Explanation
    Owned by business for long-term use.

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  • 6. 
    Interest income - ProProfs

    Interest income

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Income
    Explanation
    Earnings calculated as a percentage of money kept in the bank.

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  • 7. 
    Salaries - ProProfs

    Salaries

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Expense
    Explanation
    Payments (of $) to be made to workers in the business.

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  • 8. 
    Trade payables - ProProfs

    Trade payables

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Liability
    Explanation
    Owings by the business to the supplier. Business will pay supplier in future.

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  • 9. 
    Rent - ProProfs

    Rent

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Expense
    Explanation
    Recurring payments for renting (using) a place.

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  • 10. 
    Sales revenue - ProProfs

    Sales revenue

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Income
    Explanation
    Selling price of the goods sold to customers.

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  • 11. 
    Trade receivable - ProProfs

    Trade receivable

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Asset
    Explanation
    Owings by customers to the business. Business will receive $ from customers in future.

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  • 12. 
    Discounts allowed - ProProfs

    Discounts allowed

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Expense
    Explanation
    Given to credit customer (debtor/trade receivables) by business to encourage early payment of cash. Given at the point of payment.

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  • 13. 
    Cost of sales - ProProfs

    Cost of sales

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Expense
    Explanation
    Cost price of the goods sold. Recorded only when the business sells the goods.

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  • 14. 
    Discounts received - ProProfs

    Discounts received

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Income
    Explanation
    Given by credit supplier (creditor/trade payables) to business to encourage early payment of cash. Given at the point of payment.

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  • 15. 
    Stationery - ProProfs

    Stationery

    • Asset

    • Liability

    • Income

    • Capital

    • Expense

    • Drawing

    Correct Answer
    A. Expense
    Explanation
    As the value of stationery is low, it is classified as an expense instead. [Materiality concept]

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Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 26, 2016
    Quiz Created by
    Arshad.b.jumah
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