Accounting Flashcards
8 cards from real MATRIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 8 Accounting flashcards as text
What is the basic accounting equation?
Answer: Assets = Owner's Equity + Liabilities
The accounting equation states that Assets = Owner's Equity + Liabilities, and it must always balance.
A business buys equipment for cash. How are the accounts affected?
Answer: One asset increases and another asset decreases
Equipment (asset) increases while Bank (asset) decreases by the same amount, so total assets are unchanged.
Which document is issued to a debtor when goods are returned to the business?
Answer: Credit note
A credit note is issued by the seller to a debtor (customer) to record goods returned, reducing the amount owed.
In which financial statement would you find the net profit of a business?
Answer: Statement of Comprehensive Income (Income Statement)
Net profit is calculated in the Statement of Comprehensive Income (Income Statement) as income less expenses.
What is the term for the decrease in value of a non-current asset over its useful life?
Answer: Depreciation
Depreciation is the systematic allocation of the cost of a tangible asset over its useful life.
If trading stock costing R5 000 is sold for R8 000, what is the gross profit?
Answer: R3 000
Gross profit = sales - cost of sales = R8 000 - R5 000 = R3 000.
Money the owner takes out of the business for personal use is recorded as:
Answer: Drawings
Drawings represent assets withdrawn by the owner for personal use, which reduce owner's equity.
Which of the following is a current liability?
Answer: Creditors control
Creditors control (trade creditors) is a current liability because it is normally settled within one year.