Classification Of Accounts Quiz! Test
Dive into the 'Classification of Accounts Quiz! Test' to assess your understanding of key accounting concepts. This quiz covers various types of accounts including assets like cash, equipment, and motor vehicles, as well as expenses. It's perfect for learners looking to solidify their financial accounting knowledge.
- 1.
Cash in hand
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Physical cash is something that the business ownsRate this question:
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- 2.
Cash at bank
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Money kept in the bank account is owned by the business.Rate this question:
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- 3.
Trade receivable
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Owings by customers to the business. Business will receive $ from customers in future.Rate this question:
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- 4.
Salaries
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
E. ExpenseExplanation
Payments (of $) to be made to workers in the business.Rate this question:
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- 5.
Equipment
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Owned by business for long-term use.Rate this question:
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- 6.
Motor Vehicles
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Owned by business for long-term use.Rate this question:
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- 7.
Interest income
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
C. IncomeExplanation
Earnings calculated as a percentage of money kept in the bank.Rate this question:
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- 8.
Inventory
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
A. AssetExplanation
Goods bought for resale by the business.Rate this question:
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- 9.
Stationery
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
E. ExpenseExplanation
As the value of stationery is low, it is classified as an expense instead. [Materiality concept]Rate this question:
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- 10.
Rent
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
E. ExpenseExplanation
Recurring payments for renting (using) a place.Rate this question:
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- 11.
Trade payables
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
B. LiabilityExplanation
Owings by the business to the supplier. Business will pay supplier in future.Rate this question:
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- 12.
Sales revenue
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
C. IncomeExplanation
Selling price of the goods sold to customers.Rate this question:
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- 13.
Cost of sales
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
E. ExpenseExplanation
Cost price of the goods sold. Recorded only when the business sells the goods.Rate this question:
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- 14.
Discounts received
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
C. IncomeExplanation
Given by credit supplier (creditor/trade payables) to business to encourage early payment of cash. Given at the point of payment.Rate this question:
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- 15.
Discounts allowed
- A.
Asset
- B.
Liability
- C.
Income
- D.
Capital
- E.
Expense
- F.
Drawing
Correct Answer
E. ExpenseExplanation
Given to credit customer (debtor/trade receivables) by business to encourage early payment of cash. Given at the point of payment.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
May 26, 2016Quiz Created by
Arshad.b.jumah