Accounting IGCSE 1.0

Businesses use financial records to prepare final accounts.

Which record is used in the preparation of the Statement of Financial Position?

• Bank statement

• Cash book

• Purchases journal

• Sales journal

What is calculated in a Trading Account?

• Closing inventories

• Gross profit

• Net profit

• Sales

Which is a current liability?

• Capital

• Trade payables

• Trade receivables

• Inventories

Which would appear in a Statement of Financial Position?

• Closing inventories

• Cost of Sales

• Opening inventories

• Sales

A business provides the following information.

$

sales 10 000

purchases 8 000

opening inventories 1 000

closing inventories 1 500

sales returns 200

purchases returns 300

What is the cost of sales?

• $2000

• $2100

• $7200

• $8200

Employees’ skills are not recorded in the books of account.

Which accounting principle is involved?

• Consistency

• Money measurement

• Prudence

• Realisation

A business decides to use the same depreciation method every year.

Which accounting principle is the business following?

• Consistency

• Duality

• Matching

• Prudence

A business charges $1500 to its Profit and Loss Account for electricity. This includes $200 for an electricity bill that is outstanding at the year end.

Which accounting principle has been applied?

• Duality

• Matching

• Prudence

• Realisation

A retailer’s capital is $40 000. The following payments are made from the business bank account.

$5000 for extension to the retailer’s shop

$2000 for purchase of television for retailer’s private house

How much is the retailer’s capital now?

• $33 000

• $35 000

• $38 000

• $45 000

A supplier overcharges a customer for goods supplied on credit.

Which document will the supplier issue to the customer?

• Credit note

• Debit note

• Sales invoice

• Statement