Exam Questions Ch17 - Smart Accounting 4e | Test Bank Knowles by Cathy Knowles, Mary Carey. DOCX document preview.
Chapter 17
Test Bank
Type: true-false
Title: Chapter 17 Question 01
1) The accounting equation states that ‘assets= capital-liabilities’.
a. True
b. False
Type: true-false
Title: Chapter 17 Question 02
2) Double-entry bookkeeping requires one entry be made to record every business transaction, one a debit entry and one a credit entry.
a. True
b. False
Type: true-false
Title: Chapter 17 Question 03
3) If Jo buys a van using a bank payment to do so, then the bank account would be debited and the van account would be credited.
a. True
b. False
Type: true-false
Title: Chapter 17 Question 04
4) To increase a liability account, the account has to be debited.
a. True
b. False
Type: true-false
Title: Chapter 17 Question 05
5) To increase an expense account, the account has to be debited.
a. True
b. False
Type: true-false
Title: Chapter 17 Question 06
6) A trade payables account will usually show a credit balance.
a. True
b. False
Type: true-false
Title: Chapter 17 Question 07
7) If the trial balance totals agree, this means that all transactions have been recorded.
a. True
b. False
Type: true-false
Title: Chapter 17 Question 08
8) If the statement of financial position shows a bank balance of £43,000, then the bank T account will have a debit balance of £43,000 at that date.
a. True
b. False
Type: true-false
Title: Chapter 17 Question 09
9) When a business makes a loss as shown by the statement of profit or loss, the profit figure is credited to the capital account to show the owner’s increased investment in the business.
a. True
b. False
Type: true-false
Title: Chapter 17 Question 10
10) The statement of profit or loss is a summary of the balances remaining after the statement of financial position has been prepared.
a. True
b. False
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Smart Accounting 4e | Test Bank Knowles
By Cathy Knowles, Mary Carey