Classification Of Accounts Quiz! Test
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- 1.
Cash in hand
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Physical cash is something that the business ownsRate this question:
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- 2.
Cash at bank
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Money kept in the bank account is owned by the business.Rate this question:
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- 3.
Trade receivable
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Owings by customers to the business. Business will receive $ from customers in future.Rate this question:
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- 4.
Salaries
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
E. ExpenseExplanation
Payments (of $) to be made to workers in the business.Rate this question:
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- 5.
Equipment
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Owned by business for long-term use.Rate this question:
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- 6.
Motor Vehicles
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Owned by business for long-term use.Rate this question:
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- 7.
Interest income
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
C. IncomeExplanation
Earnings calculated as a percentage of money kept in the bank.Rate this question:
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- 8.
Inventory
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Goods bought for resale by the business.Rate this question:
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- 9.
Stationery
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
E. ExpenseExplanation
As the value of stationery is low, it is classified as an expense instead. [Materiality concept]Rate this question:
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- 10.
Rent
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
E. ExpenseExplanation
Recurring payments for renting (using) a place.Rate this question:
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- 11.
Trade payables
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
B. LiabilityExplanation
Owings by the business to the supplier. Business will pay supplier in future.Rate this question:
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- 12.
Sales revenue
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
C. IncomeExplanation
Selling price of the goods sold to customers.Rate this question:
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- 13.
Cost of sales
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
E. ExpenseExplanation
Cost price of the goods sold. Recorded only when the business sells the goods.Rate this question:
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- 14.
Discounts received
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
C. IncomeExplanation
Given by credit supplier (creditor/trade payables) to business to encourage early payment of cash. Given at the point of payment.Rate this question:
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- 15.
Discounts allowed
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
E. ExpenseExplanation
Given to credit customer (debtor/trade receivables) by business to encourage early payment of cash. Given at the point of payment.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
May 26, 2016Quiz Created by
Arshad.b.jumah
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