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6. What would cash in the business bank account be classified as?

  • CA
  • LTL
  • FA
  • CL

7. What are stocks classified as?

  • CA
  • FA
  • CL
  • LTL

8. What would debtors be classified as?

  • FA
  • CA
  • CL
  • LTL

9. Which of the following is a liability of a firm?

  • Money owed by a debtor
  • Overdrawn balance on the business bank account
  • Equipment that the business owns
  • Cash in the till

10. Which of the following is an asset of a business?

  • Machinery owned by a business
  • The capital of a business
  • Overdrawn balance on the business bank account
  • Money owed to a creditor

11. If a business pays a creditor by cheque, what is the effect on assets and liabilities?

  • reduce bank and increase creditors
  • reduce cash and reduce creditors
  • reduce bank and reduce creditors
  • increase bank and increase creditors

12. What would a bank overdraft be classified as?

  • CL
  • FA
  • LTL
  • CA

13. What would cash in the till register be classified as?

  • LTL
  • CA
  • FA
  • CL

14. What would a motor van for use in the business be classified as?

  • Fixed Asset
  • CA
  • CL
  • LTL