Matric Accounting — Questions and Answers
Question 1: What is the basic accounting equation?
- Assets = Owner's Equity + Liabilities (Correct answer)
- Assets = Income - Expenses
- Capital = Assets + Liabilities
- Profit = Assets - Capital
Correct answer: Assets = Owner's Equity + Liabilities
The accounting equation states that Assets = Owner's Equity + Liabilities, and it must always balance.
Question 2: A business buys equipment for cash. How are the accounts affected?
- Assets increase and liabilities increase
- One asset increases and another asset decreases (Correct answer)
- Owner's equity increases
- Liabilities decrease and equity decreases
Correct answer: One asset increases and another asset decreases
Equipment (asset) increases while Bank (asset) decreases by the same amount, so total assets are unchanged.
Question 3: Which document is issued to a debtor when goods are returned to the business?
- Invoice
- Credit note (Correct answer)
- Debit note
- Receipt
Correct answer: Credit note
A credit note is issued by the seller to a debtor (customer) to record goods returned, reducing the amount owed.
Question 4: In which financial statement would you find the net profit of a business?
- Statement of Financial Position
- Cash Flow Statement
- Debtors Ledger
- Statement of Comprehensive Income (Income Statement) (Correct answer)
Correct answer: Statement of Comprehensive Income (Income Statement)
Net profit is calculated in the Statement of Comprehensive Income (Income Statement) as income less expenses.
Question 5: What is the term for the decrease in value of a non-current asset over its useful life?
- Discount
- Depreciation (Correct answer)
- Drawings
- Dividends
Correct answer: Depreciation
Depreciation is the systematic allocation of the cost of a tangible asset over its useful life.
Question 6: If trading stock costing R5 000 is sold for R8 000, what is the gross profit?
- R13 000
- R8 000
- R5 000
- R3 000 (Correct answer)
Correct answer: R3 000
Gross profit = sales - cost of sales = R8 000 - R5 000 = R3 000.
Question 7: Money the owner takes out of the business for personal use is recorded as:
- Capital
- Drawings (Correct answer)
- Salary
- Loan
Correct answer: Drawings
Drawings represent assets withdrawn by the owner for personal use, which reduce owner's equity.
Question 8: Which of the following is a current liability?
- Land and buildings
- Creditors control (Correct answer)
- Vehicles
- Fixed deposit
Correct answer: Creditors control
Creditors control (trade creditors) is a current liability because it is normally settled within one year.
Matric Accounting
What is the basic accounting equation?