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- Multiple ChoicePlease save your changes before editing any questions.
Which group contains only liabilities?
bank loan, trade payables, prepaid rent
bank overdraft, trade payables, unpaid wages
trade payables, cash at bank, unpaid rates
trade payables, inventory, unpaid wages
- Multiple ChoicePlease save your changes before editing any questions.
What is the accounting equation?
assets – liabilities = capital
assets + liabilities = capital
liabilities – assets = capital
liabilities – capital = assets
- Multiple ChoicePlease save your changes before editing any questions.
Omar returned faulty goods to Yasmin, the supplier.
Which document did Omar send to Yasmin?
credit note
debit note
Invoice
statement of account
- Multiple ChoicePlease save your changes before editing any questions.
Jacob settled the account of Ahmed, a credit supplier. He made the following entries on the credit side of his cash book.
Which entries did Jacob make on the debit side of Ahmed’s account?
Bank $195
Bank $200
Bank $195
Discount Allowed $5
Bank $195
Discount Received $5
- Multiple ChoicePlease save your changes before editing any questions.
What may a credit balance on a ledger account represent?
accrued income
asset
expense
prepaid income
- Multiple ChoicePlease save your changes before editing any questions.
The following partly-completed account appeared in Edward’s sales ledger.
On 29 April, Ann paid $10 000 by cheque and was given a cash discount of $200.
Which statement is correct on 30 April?
Ann owed Edward $10 800.
Ann owed Edward $11 200
Edward owed Ann $10 800.
Edward owed Ann $11 200.
- Multiple ChoicePlease save your changes before editing any questions.
The totals of a trial balance did not agree. The total of the debit column was $13 400.
It was found that the purchases journal had been overcast by $195 and goods bought from supplier X for $85 had been incorrectly credited to Y.
What was the total of the credit column of the trial balance?
$13 120
$13 205
$13 595
$13 680
- Multiple ChoicePlease save your changes before editing any questions.
Leo is unable to pay the debt he owes to Sam.
Which entry did Sam make to write off this irrecoverable (bad) debt?
Debit - Irrecoverable debts account
Credit - income statement
Debit - Irrecoverable debts account
Credit - Leo Account
Debit - Income statement
Credit - Leo Account
Debit - Leo Account
Credit - Income statement
- Multiple ChoicePlease save your changes before editing any questions.
Rashid maintains a provision for doubtful debts of 5% of the trade receivables at the end of each year.
Trade receivables owed $40 000 on 31 March 2017.
Trade receivables owed $46 000 on 31 March 2018.
Which journal entry should Rashid make on 31 March 2018?
Dr Income statement $300
Cr Provision for doubtful debts $300
Dr Income statement $2300
Cr Provision for doubtful debts $2300
Dr Provision for doubtful debts $300
Cr Income statement $300
Dr Provision for doubtful debts $2300
Cr Income statement $2300
- Multiple ChoicePlease save your changes before editing any questions.
A trader prepares financial statements each year. What do these assist the trader to do?
calculate the amount owing to creditors
calculate the cash drawings
check the bank statement balance
make decisions about the future
- Multiple ChoicePlease save your changes before editing any questions.
Which does not reduce the owner’s capital?
business expenses paid using a personal cheque
cash withdrawn from the business bank account for personal use
goods taken from inventory for personal use
personal expenses paid using business cash
- Multiple ChoicePlease save your changes before editing any questions.
A customer returns goods to a supplier. How does the supplier record this in his ledger?
Dr Customer; Cr Purchases Returns
Dr Customer; Cr Sales Returns
Dr Purchases Returns; Cr Customer
Dr Sales Returns; Cr Customer
- Multiple ChoicePlease save your changes before editing any questions.
Which transaction is recorded in the purchases ledger?
cash purchases
cheque paid to a Trade Payable
cheque received from a Trade Receivable
purchase of non-current assets
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is NOT an asset of a business?
Bank overdraft
Premises
Loan to Danial
Trade receivables
- Multiple ChoicePlease save your changes before editing any questions.
Which item will increase the capital owned of a sole trader?
More sales
More expenses
More rental paid
Less interest received