Business Accounting Volume 1 12e Frank Wood (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of Each Chapter (Complete And Verified Study material) (142pages) LEARNEXAMS

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following is correct? 1) A) Assets Liabilities Capital £9,550 £1,150 £8,200 B) Assets Liabilities Capital £7,850 £1,250 £6,600 C) Assets Liabilities Capital £5,420 £6,540 £1,120 D) Assets Liabilities Capital £8,200 £2,800 £11,000 2) Which of the following equations is correct? 2) A) Capital = Assets - Liabilities B) Liabilities - Capital = Assets C) Capital = Assets + Liabilities D) Assets + Capital = Liabilities 3) Which of the following is an asset of a firm? 3) A) Machinery owned by the firm. B) An overdrawn balance on the firm's bank account. C) Money owed by the firm to one of its suppliers in respect of goods purchased on credit. D) The capital of the firm. 4) The following is a list of the assets and liabilities of a firm at a particular date. Premises owned by the firm £20,000 Money owed by the firm to its Accounts payable £3,000 Inventory owned by the firm £8,500 Loan received by the firm from a bank £4,000 Cash in the firm's safe £100 The firm's capital at that date is: 4) A) £32,400 B) £21,100 C) £21,600 D) None of the above. 5) Which of the following is a liability of a firm? 5) A) Money owed to the firm by its accounts receivable. B) A building owned by the firm. C) Cash in the firm's safe. D) Money which the firm has borrowed and has not yet repaid.