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- 1. Multiple Choice
Accounting is the process of the
i. gathering and recording informationii. raising funds for a business
iii. providing information that influences decisions
I and II only
I and III only
II and III only
I, II, and III
- 2. Multiple Choice
Which of the following groups of persons may be LEAST interested in using accounting information to determine how well businesses are managed?
Owners
Investors
Employees
Customers
- 3. Multiple Choice
Which of the following states the correct order of the stages in the accounting cycle, before Final Accounts?
Posting to the ledger, journalizing, trial balance
Posting to the ledger, trial balance, journalizing
Journalizing, trial balance, posting to the ledger
Journalizing, posting to the ledger, trial balance
- 4. Multiple Choice
A balance sheet serves the purpose of
showing the values of assets, liabilities and capital.
calculating the profits and losses made.
showing the value of the closing stock in hand.
determining the available cash balance.
- 5. Multiple Choice
Which of the following are examples of Current Liabilities?
i. Mortgagesii. Accounts Payable
iii. Accrued Wages
I and II only
I and III only
II and III only
I, II and III
- 6. Multiple Choice
Which of the following accounts is made up of real accounts ONLY?
Plant, machinery, inventory, account receivables
Equipment, furniture, vehicles, plant
Vehicle, capital, building, prepayments
Cash, inventory, building, account receivables
- 7. Multiple Choice
Which of the following lists of current assets is arranged in order of liquidity from least to most liquid?
Accounts receivable, prepayments, inventory, cash, bank
Prepayments, accounts receivables, cash, bank, inventory
Cash, bank, prepayments, accounts receivables, inventory
Inventory, accounts receivables, prepayments, bank, cash
- 8. Multiple Choice
The Cash Book is BEST used for record
goods sold for cash
goods returned for cash
goods purchased for cash
cash receipts and cash payments
- 9. Multiple Choice
A Portap bought goods for $500 on credit. In which book of prime entry will this be recorded?
Purchases Journal
Sales Journal
General Journal
Cash Book
- 10. Multiple Choice
A businessman offers a discount for prompt payment for goods purchased. Under which column in his Three-Column Cash Book would this be entered?
Bank
Cash
Discount allowed
Discount received
- 11. Multiple Choice
R. Stevens a petty cashier receives a float of $350. He spends $320 out of this and requests that his float be increased to S400. If his request is granted, how much will he receive?
$320
$350
$370
$400
- 12. Multiple Choice
The total credit of the bank column of a Three-Column Cash Book is greater than the total debit. The MOST likely result of this situation is that
there was an overdraft.
transactions were omitted from the debit side.
some figures were overstated on the credit side.
the incorrect transactions were entered on the credit side.
- 13. Multiple Choice
Which of the following BEST describes the 'double-entry system of accounting?
A ledger account must have two sides.
An account must be written twice in the ledger.
Each transaction must have a debit entry and a credit entry.
Each transaction must be written in two subsidiary books.
- 14. Multiple Choice
Mr. Abel and Mr. Blue purchased goods valued at $50 and $75 respectively from Mr. Kane, on credit. Another customer paid cash for goods amounting to $550. Mr. Kane took goods at cost for himself amounting to $500. Which of the following figures represents the total in Mr. Kane's Sales Account?
$ 125
$ 425
$ 675
$1 175
- 15. Multiple Choice
Which of the following accounts are usually transferred to the Income Statement?
Rent, Premises, Drawings
Drawings, Rent, Purchases
Purchases, Furniture, Commission Received
Commission Received, Rent, Purchases
- 16. Multiple Choice
When current liabilities are subtracted from current assets, the result is termed
cash balance
capital owned
working capital
capital employed
- 17. Multiple Choice
K. Khan, a debtor ofA and B Enterprises, settles his debt of $120 less 2 discount by cheque. How should the double entry be recorded in the books of A and B Enterprises?
Dr K Khan-----$117
Dr Discount received—---$ 3
Cr Bank ----$120
Dr K Khan—--$117
Dr Discount allowed—----$ 3
Cr Bank—-----$120
Dr Bank—--------$117
Dr Discount allowed----------------------$ 3
Cr K Khan—------$120
Dr Bank—--------$117
Cr Discount received—-----------------nbsp; 3
Cr K Khan--------$120
- 18. Multiple Choice
Machinery Account—-------$4000
Stock Account—-------------$3000
Purchases Account—--------$1000
Sales Account—--------------$5000
Capital Account—------------$3000
The above balances appeared in the ledger of Mrs. G. Dalton. What is the trial balance total?
$5 000
$6 000
$7 000
$8 000
- 19. Multiple Choice
The working capital of A. Young and Sons is $15 500. The total amount of current assets is $16 500. What is the total amount of current liabilities?
$ 1 000
$15 500
$l6 500
$32 000
- 20. Multiple Choice
Items 22--23 refer to the following table which shows a trader's operation at the end of the trading period.
What is the cost of goods sold?
$49 742
$50 653
$51 415
$53 103
- 21. Multiple Choice
Items 22--23 refer to the following table which shows a trader's operation at the end of the trading period.
What is the gross profit?
$31 645
$33 215
$34 023
$80 025
- 22. Multiple Choice
At the end of the year the capital of the business was $33 000. At the beginning of the year the capital was $28 000. During the year the owner withdrew $2000 for personal use. What is his net profit for the year?
$ 5000
$ 7000
$30 000
$61 000
- 23. Multiple Choice
Which of the following accounts are nominal?
Wages and Rent
Stock and Debtors
Machinery and Plant
Creditors and Fixtures
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