Basic Accounting (Assets, Liabilities & Capital)

Past Papers

Past Papers
Note: The solution of these past papers explained in the related video. Further,
questions have been taken from the previous course code 7110 now 2020
onwards the course code would be 7707.
These past papers cover the topic “Basic Accounting-Assets, Liabilities &
Capital”.

May / June 2006 /7110 /01

Question #20
Which is the fixed asset?

A computer equipment B debtors C motor vehicle repairs D rent

October / November 2006 /7110 /01

Question #28
Which is fixed asset?

A bank balance B debtors C motor vehicles D prepayments

October / November 2006 /7110 /01

Question #29
P. Smith is making a list of his assets and liabilities. Which is a liability?

A computer B creditors C loan to J. Jones D premises

May / June 2007 /7110 /01

Question #24
What is a current asset of a sports goods shop?

A bank overdraft B fixtures and fittings C shop premises

D stock of footballs

October / November 2007 /7110 /01

Question #25
What is a current liability?

A advertising prepaid B debtors C stock D wages accrued

1|P a g e
 Basic Accounting (Assets, Liabilities & Capital)
Past Papers

October / November 2008 /7110 /01

Question #02
What is the accounting equation?

A. assets – liabilities = capital

B. assets + liabilities = capital
C. liabilities – assets = capital
D. liabilities – capital = assets

May / June 2009 /7110 /01

Question #01
Which best describe the assets of the business?

A. cash and items that should turn into cash in the near future
B. cash invested by the owner of the business
C. items bought for long term use by the business
D. items owing to or owned by the business

October / November 2009 /7110 /01

Question #02
Javed had the following assets and liabilities.

equipment 10 000
motor vehicle 8 000

bank balance 2 000 credit

amount owing to suppliers 4 000
amount owing by customers 5 000
stock 6 000
loan to Davinder 3 000

What was Javed’s capital?

A $20 000 B $24 000 C $26 000 D $30 000

May / June 2010 /7110 /01

Question #02
What is the accounting equation?

2|P a g e
 Basic Accounting (Assets, Liabilities & Capital)
Past Papers

A. assets + liabilities = capital

B. assets – liabilities = capital
C. capital + assets = liabilities
D. capital – assets = liabilities

October / November 2010 /7110 /01

Question #02
Which does not reduce the owner’s capital?

A. business expenses paid using a personal cheque

B. cash withdrawn from the business bank account for personal use
C. goods taken from inventory (stock) for personal use
D. personal expenses paid using business cash

3|P a g e