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- 1. Multiple Choice
What is a petty cash book?
Analyze trading result
Enter transaction in the ledger
It records low-value cash payments
Prepares your year end financial payment
- 2. Multiple Choice
What is the advantage of the imprest system of the petty cash?
Petty cash expenditure can be controlled
Petty vouchers are not required
It ensures that fraud cannot take place
The amount reimbursed is the same each month
- 3. Multiple Choice
How much was the capital expenditure?
$8050
$8180
$8230
$8360
- 4. Multiple Choice
On 1 June, Samir sold goods on credit to Faisal. Some of the goods were returned on 8 June. In what order would Samir and Faisal exchange documents in June?
Debit note, credit note, invoice
Invoice, credit note, debit note
invoice, debit note, credit note
Credit note, debut note, invoice
- 5. Multiple Choice
A petty cash book has an imprest amount of $100 which is restored on the last day of each month. During August, the petty cash payments totalled $86. A loan from petty cash, $20 to a member off staff in July was repaid on 29 August. The imprest was restored on 31 August.
How much was shown for petty cash in the statement of financial position prepare at close of business on 31 August?
$14
$66
$100
$34
- 6. Multiple Choice
What is the name of the document that summarises the customer's transaction for the month
Statement of account
Debit note
Credit note
Invoice
- 7. Multiple Choice
$37
$26
$94
$84
- 8. Multiple Choice
What expenses for an accounting period must be matched against?
Income received in advance
A prepayment amount
Income of the particular period
Statement of an accrued expenses
- 9. Multiple Choice
Fred keeps a petty cash book on the imprest system with an imprest of $200. The book is balanced monthly and the imprest is restored on the first day of the following month.
Fred’s petty cash expenses for June totalled $175.
Which entries record restoration of the imprest on 1 July?
A
B
C
D
- 10. Multiple Choice
Machinery which had cost $6290 was sold for $3100. The disposal account showed a profit on disposal of $584.
How much was the depreciation up to the date of disposal and on which side of the disposal account was it recorded?
$2606 on the credit side
$2606 on the debit side
$3774 on the credit side
$3774 on the debit side
- 11. Multiple Choice
Why does a business provide for depreciation on non-current assets?
to charge the cost of non-current assets against profit in the year of purchase
to ensure that non-current assets appear at book value in the statement of financial position
To ensure that the matching principle is applied when preparing financial statement
to retain cash in the business for replacement of non-current assets
- 12. Multiple Choice
What is the effect of treating an item of capital expenditure as revenue expenditure?
1 and 3
1 and 4
2 and 3
2 and 4
- 13. Multiple Choice
What was the profit or loss for the year ended 31 March 2021?
$7875 loss
$7875 profit
$15 675 loss
$15 675 profit
- 14. Multiple Choice
Insurance prepaid, $120, was treated as an accrual in the income statement.
Overstated $120
Overstated $240
Understated $120
Understated $240
- 15. Multiple Choice
The accounts of a business are prepared on the basis that the business will continue to operate for the foreseeable future.
Which accounting principle is being applied?
Accruals (matching)
Consistency
Going concern
Realisation
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