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Which of the following is an asset of a firm? 答案及選項: A.  The capital of the firm B.  The loss made by the firm C.  Premise owned by the firm D.  Money owed by the firm to a bank11)Which of the following is a liability of a firm? 答案及選項: A.  Money lent to the firm by a bank B.  Money lent by the firm to a customer C.  The capital of the firm D.  Premises owned by the firm12)Which of the following accounts of a firm should be credited when there is an increase in the amount?(1) Debtors(2) Capital(3) Customer deposits(4) Bank loans(5) Furniture and fixtures 答案及選項: A.  (1), (4) and (5) only B.  (2), (4) and (5) only C.  (2), (3) and (4) only D.  (1), (2) and (3) only13)Which of the following double entries are incorrect?(1) The owner contributed furniture: Dr Furniture   Cr Capital(2) Bought computers on credit from Maxi Computers Ltd: Dr  Maxi Computers Ltd   Cr Computers(3) Paid rates by cheque:  Dr Bank  Cr Rates(4) Received cash from a debtor:  Dr Cash   Cr Debtors 答案及選項: A.  (2) and (3) only B.  (1) and (3) only C.  (3) and (4) only D.  (3) only

Question

Which of the following is an asset of a firm? 答案及選項: A.  The capital of the firm B.  The loss made by the firm C.  Premise owned by the firm D.  Money owed by the firm to a bank11)Which of the following is a liability of a firm? 答案及選項: A.  Money lent to the firm by a bank B.  Money lent by the firm to a customer C.  The capital of the firm D.  Premises owned by the firm12)Which of the following accounts of a firm should be credited when there is an increase in the amount?(1) Debtors(2) Capital(3) Customer deposits(4) Bank loans(5) Furniture and fixtures 答案及選項: A.  (1), (4) and (5) only B.  (2), (4) and (5) only C.  (2), (3) and (4) only D.  (1), (2) and (3) only13)Which of the following double entries are incorrect?(1) The owner contributed furniture: Dr Furniture   Cr Capital(2) Bought computers on credit from Maxi Computers Ltd: Dr  Maxi Computers Ltd   Cr Computers(3) Paid rates by cheque:  Dr Bank  Cr Rates(4) Received cash from a debtor:  Dr Cash   Cr Debtors 答案及選項: A.  (2) and (3) only B.  (1) and (3) only C.  (3) and (4) only D.  (3) only

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Solution

The answers to the questions are as follows:

  1. The asset of a firm among the given options is C. Premise owned by the firm. Assets are resources owned by a company that have future economic value.

  2. The liability of a firm among the given options is A. Money lent to the firm by a bank. Liabilities are what a company owes, such as loans, accounts payable, mortgages, deferred revenues, and accrued expenses.

  3. The accounts of a firm that should be credited when there is an increase in the amount are C. (2), (3) and (4) only. In accounting, a credit is an entry recording a decrease in assets and expenses, and an increase in income, liabilities, and equity.

  4. The double entries that are incorrect among the given options are A. (2) and (3) only. In double-entry bookkeeping, every transaction is recorded as both a debit and a credit. The accounts that should be debited and credited can vary depending on the transaction.

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