Accounting

TEST 1
Name :

2
5

Class:

1. Which group contains only assets?

A cash at bank, accounts receivables, prepaid rent
B cash, motor vehicle, bank overdraft
C accounts payables, bank loan, machinery
D accounts receivables, unpaid wages, inventory
2. Which is not a current asset?
A

cash in hand

money owed by a customer

prepaid bill for electricity

unpaid invoice from a supplier

3. If the business's owner withdraws cash for his personal use what will be the
effect on capital?
A Increase in capital
B Remain the same
C Decrease in capital
D No effect on capital
4. Which of the following is an example of a non-current liabilities?
A.

Overdraft balance

B. Accounts payables
C. Bank loan payable in 8 years
D. RM 1,000 of a long term loan repayable in the next 6 months
5. Bank overdraft is
A.

Amount paid to the bank by the account holder

B. Charges on the amount owing to the bank

C. Cash deposited in the bank
D. Amount of cash overdrawn by the current account holder, which
require immediate settlements

(a) Explain the meaning and give two example of the following terms.
1. Asset

2.Liability

3.owners.capital

[9]
(b) Complete the table below using a tick ( / ) to indicate if each item is an
asset or a liability. The first has been completed as an example.
Asset
Inventory

Liability

Motor vehicle
Accounts payables
Accounts receivables
Overdraft Bank
Cash
Loan to employee
Premises
Bank
[4]

2. Complete the following table. Indicate with a tick ( / ) whether each item is
an asset or a liability. The first item has been completed as an example.
Asset
Office equipment

Liability

Prepaid rent
Accrued wages
Bank loan
Inventory of goods for resale
Stationery for office use
Amount due to creditor
[3]

b. Give two example of an expense account.

[2]
c. Give two example of a Revenue account.

[2]