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- 1. Multiple Choice
When a business grants credit to its customers, it consider both accounting and non-accounting information. Which of the following is an accounting information?
New customers' history of repayment
Economic outlook
Reputation of customers
Credit terms and cash discount
- 2. Multiple Choice
When a business grants credit to its customers, it consider both accounting and non-accounting information. Which of the following are non-accounting information? (Select 2)
Trade receivable balance
Economic outlook
Existing customers' history of payment
Reputation of new customers
- 3. Multiple Choice
What are the double entries in recording a credit sales to customers? (Select 2)
Dr TR
Cr Sales revenue
Dr Cash at bank
Cr Sales revenue
Dr Cost of sales
Cr Inventory
Dr Inventory
Cr Cost of sales
- 4. Multiple Choice
What are the double entries in recording a Sales Returns from customers?
(Select 2)
Dr Sales revenue
Cr TR
Dr Sales returns
Cr TR
Dr Cost of sales
Cr Inventory
Dr Inventory
Cr Cost of sales
- 5. Multiple Choice
What are the double entries in recording a cheque received from a trade receivable after a discount is given to trade receivable by business? (Select 3)
Dr Trade receivable
Cr Trade receivable
Dr Cash at bank
Dr Discount allowed
Cr Discount Allowed
- 6. Multiple Choice
What are the double entries in recording a dishonoured cheque? (Select 2)
Dr Trade receivable
Cr Trade receivable
Dr Cash at bank
Cr Cash at bank
- 7. Multiple Choice
Interpret the following double entries
Dr Cash at bank 950
Dr Discount allowed 50
Cr Trade receivable 1000
A discount of $50 was received by the business when trade receivable paid $950 to settle $1000 owing.
A cheque of $1000 was received from TR to fully settle amount of $1000 owing
A cheque of $950 was received from TR to fully settle the amount of $1000 owing
- 8. Multiple Choice
A trade discount is given to encourage customers to make prompt or early payment. True or false?
True
False
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