Bookkeeping

Which of the following is not an asset?

• Buildings

• Cash in hand

• Accounts receivable

• Loan

Which of the following best describes a trial balance?

• It shows the financial position of a business

• It is a special account

• It shows all the entries in the books

• It is a list of balances on the books

Gross profit is_________________.

• Net profit - expenses

• Cost of goods sold + opening inventory

• Sales - purchases

• Revenue - cost of goods sold

Which of the following best describe a Balance Sheet?

• It shows the financial position of a business.

• It is a special account.

• It shows the profit or loss of a business.

• It is a list of balances on the books.

The statement of _____________

shows the profitability of the business

• Cash flows

• Profitability

• Financial Position

• Profit or Loss

Mr A purchased goods on credit from Mr B but then returned them as they were faulty.

Which of the following statements would be true?

• Mr A would send a credit note to Mr B

• Mr A would send an invoice to Mr B

• Mr B would send a credit note to Mr A

• Mr B would send an invoice to Mr A

What is recorded in the purchases ledger?

• Account Payable

• Account receivables

Money going OUT of the bank account is always a....

• Debit

• Credit

Which if the following accounts usually has a credit balance?

• Rent paid

• Motor vehicle asset

• Capital

• Petty cash balance

Which best describes a Trial Balance?

• A record of the bank balances only

• A book of prime entry

• A list of all the account balances

• A list of subsidiary accounts