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</p> Signup and view all the answers

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

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

    What does R1008 represent in the given content?

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

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

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

    How is R15 represented in the context of the operations?

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

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

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

    What does the expression R3500 * 45000 equal?

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

    What is an asset in a business context?

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

    What is NOT considered an asset?

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

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

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

    What characteristic primarily defines a long-lasting asset?

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

    Which of the following items typically depreciates in value?

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

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

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

    In a balance sheet, how are assets categorized?

    <p>As current and non-current assets</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.</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.</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.</p> Signup and view all the answers

    What is typically recorded when a bank deposit occurs?

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

    What describes a transaction?

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

    Which of the following represents a current liability?

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

    What is an example of a non-current asset?

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

    What happens to assets during a debit entry?

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

    What is typically kept in a cash float?

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

    Which condition describes when a loss exceeds profit?

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

    How is owner's equity calculated?

    <p>Owner's Equity = Assets - Liabilities</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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    Related Documents

    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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