Accounting Basics Quiz
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Questions and Answers

What does SP represent in the context of pricing?

  • Selling Price (correct)
  • Service Price
  • Standard Price
  • Starting Price

Which formula correctly represents the concept of Mark-up (MU)?

  • MU = Selling Price - Cost Price (correct)
  • MU = Cost Price - Selling Price
  • MU = Selling Price ÷ Cost Price
  • MU = Cost Price ÷ Selling Price

If a business generates revenue from selling physical items, what is the correct term to describe this type of business?

  • Franchise business
  • Investment business
  • Service business
  • Merchandising business (correct)

What does a profit signify in a business context?

<p>Total revenue exceeds total expenses (D)</p> Signup and view all the answers

In financial terms, what does the term 'loss' refer to?

<p>Excess expenses over income (C)</p> Signup and view all the answers

What does R1008 represent in the given content?

<p>A numerical value (D)</p> Signup and view all the answers

What is the result of the expression R330 x 100 + 33?

<p>R33,033 (D)</p> Signup and view all the answers

How is R15 represented in the context of the operations?

<p>R1,500 (C)</p> Signup and view all the answers

If 50% of R15,000 is calculated, what is the resultant value?

<p>R7,500 (D)</p> Signup and view all the answers

What does the expression R3500 * 45000 equal?

<p>R1,575,000 (A)</p> Signup and view all the answers

What is an asset in a business context?

<p>A long-lasting item utilized for business operations (A)</p> Signup and view all the answers

Which statement best describes a long-lasting item for business?

<p>It provides ongoing utility in business activities. (D)</p> Signup and view all the answers

What is NOT considered an asset?

<p>A business loan that is to be repaid (B)</p> Signup and view all the answers

Which of the following is an example of a tangible asset?

<p>Office machinery (B)</p> Signup and view all the answers

What characteristic primarily defines a long-lasting asset?

<p>Continuous usefulness over time (A)</p> Signup and view all the answers

Which of the following items typically depreciates in value?

<p>Vehicle used for deliveries (B)</p> Signup and view all the answers

Which accounting principle involves the long-term value of assets?

<p>Going concern assumption (C)</p> Signup and view all the answers

In a balance sheet, how are assets categorized?

<p>As current and non-current assets (B)</p> Signup and view all the answers

What effect does an income increase have on the debit and credit sides?

<p>Increases equity on the credit side and decreases on the debit side. (B)</p> Signup and view all the answers

In the context of bank transactions, what is the role of a rent receipt in transactions?

<p>It is a record of income received. (A)</p> Signup and view all the answers

When a cash sale is made, what is the expected impact on the bank?

<p>Cash sales increase the bank balance. (C)</p> Signup and view all the answers

What is typically recorded when a bank deposit occurs?

<p>An increase in capital. (B)</p> Signup and view all the answers

In a bank transaction, how is a duplicate receipt important?

<p>It acts as evidence of a transaction for record-keeping. (C)</p> Signup and view all the answers

What describes a transaction?

<p>Receiving payment or money between two people. (A)</p> Signup and view all the answers

Which of the following represents a current liability?

<p>Accounts payable due within 30 days. (A)</p> Signup and view all the answers

Which equation correctly represents the relationship between assets and owner's equity?

<p>Assets = Owner’s Equity + Liabilities (C)</p> Signup and view all the answers

What is an example of a non-current asset?

<p>Vehicles owned for business use. (B)</p> Signup and view all the answers

What happens to assets during a debit entry?

<p>Assets increase on the debit side. (A)</p> Signup and view all the answers

What is typically kept in a cash float?

<p>Cash in small denominations to give change. (C)</p> Signup and view all the answers

Which condition describes when a loss exceeds profit?

<p>Negative cash flow (B)</p> Signup and view all the answers

How is owner's equity calculated?

<p>Owner's Equity = Assets - Liabilities (B)</p> Signup and view all the answers

Study Notes

Profit and Loss

  • Profit is when a business earns more money than it spends
  • Loss occurs when a business spends more money than it earns
  • Tax is paid based on profit

Business Types

  • A business that provides a service in exchange for money is a sole trader
  • A business that sells a physical item in exchange for money is also a sole trader

Accounting Terms

  • Asset : A long-lasting item used for a business
  • Transaction : An exchange of money between two people, involving either receiving or paying
  • Current Liabilities: Debts due within 12 months
  • Non-current Liabilities: Debts due after 12 months

Assets

  • An asset is anything of value that a business owns. Examples include:
    • Current Asset: A bank account
    • Non-current Asset: Vehicles

Accounting Equations

  • Assets = Owner's Equity + Liabilities
  • Owner's Equity = Assets - Liabilities

Other Accounting Concepts

  • Cash float: Money kept in the cash register to give change to customers
  • Credit: The right side of the accounting equation
  • Debit: The left side of the accounting equation
  • Income: Money earned by a business
  • Equity: Represents the owner's investment in the business
  • Expense: Money spent by a business
  • Journal Entries: Records of financial transactions

Example Journal Entries

  • Journal entry 1:
    • Debit: Bank account
    • Credit: Capital account
    • Amount: R20,000
  • Journal entry 2:
    • Debit: Bank account
    • Credit: Rent income
    • Amount: R2,500
  • Journal entry 3:
    • Debit: Bank Account
    • Credit: Cash sales
    • Amount: R3,000

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Grade 9 ACC Sem 2 Book 1 PDF

Description

Test your knowledge on profit, loss, and key accounting terms. Explore the concepts of assets, liabilities, and different types of businesses. This quiz covers essential accounting equations and concepts that are fundamental for any business operation.

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