Grade 10 - Principles of Accounts - Revision for End of Term Examination January 2021

Internal users of the financial statements include

Employees, managers, shareholders, accountants

Which of the following are functions of a book-keeper?

Posting and Recording

Which of the following should not be called 'Purchases'?

Purchases of a motor van for use by firm

Which of the following best describes the meaning of 'Sales'?

Sale of items previously included in 'Purchases'

The accounting cycle goes by the following order

Source documents ⇨ journal ⇨ ledgers ⇨ trial balance ⇨ financial statements

Use the accounting equation to complete the table below: ASSETS $ CAPITAL $ LIABILITIES $ 12,500 1,800 ______

$10,700

Use the accounting equation to complete the table below: ASSETS $ CAPITAL $ LIABILITIES $ 30,500 18,820 ______

$11,680

Use the accounting equation to complete the table below: ASSETS$ CAPITAL $ LIABILITIES $ 70,100 _______ 15,500

$54,600

Use the accounting equation to complete the table below: ASSETS $ CAPITAL $ LIABILITIES $ ______ 22,210 45,555

$67,765

The resources introduced into the business by its owner.

Capital

What is another name for the owner's equity?

Capital

From the transactions below identify the account to be debited and the account to be credited. Select from the drop down menu. A debtor, J. Cross, pays us by cheque

Debit - Bank and Credit - J. Cross

From the transactions below identify the account to be debited and the account to be credited Select from the drop down menu. i) Started business with cash.

Debit - Cash and Credit - Capital

From the transactions below identify the account to be debited and the account to be credited . Select from the drop down menu. iv) Paid a creditor, D. Lord, by cash

Debit - D. Lord and Credit - cash

From the transactions below identify the account to be debited and the account to be credited . Select from the drop down menu. ii) Purchase machinery from D. Roulston on credit.

Debit - Machinery and Credit - D. Roulston

From the transactions below identify the account to be debited and the account to be credited . Select from the drop down menu. iii) Bought motor lorry for cash.

Debit - motor lorry and Credit - cash

Using the 'permanency' method, what is the correct order in which these fixed assets should be shown in a balance sheet is:

building, machinery, fixtures, motor vehicle

Using the 'order of liquidity', the descending order in which current assets should be shown in a balance sheet is:

stock, debtors, bank, cash

Which is the BEST definition of a Balance Sheet?

A statement of all the assets, liabilities and capital of a business

What is the accounting equation?

Assets = Liabilities + Capital

Loan from J. Henry

Is an example of a liability

Premises

Is an example of an asset

Creditors

Individuals or businesses to whom your business owes money

Debtors

Individuals or businesses who owes money to your business

What is accounting?

The information system that identifies, records, and communicates the economic events of an organization to interested users.