POa 2020

A non-trading organization is mainly concerned with

• providing various services for its members

• making maximum profit for the proprietor

• trading only with wholesalers

• importing goods for resale

The term Accounting refers to the

• use of information in making business decisions

• use of special ways of recording business information

• journalizing, posting and balancing of accounts in special books

• recording, analyzing and interpreting of business information

Which of the following is nominal

• Wages and Rent

• Stock and debtors

• Machinery and Plant

• Creditors and fixtures

A trade discount may be described as an allowance given

• to attract buyers

• for quick payments of accounts

• when goods are of a poor quality

• to traders who buy in large quantities

When money is taken from cash and paid into a bank account, the recording is referred to as a

• the imprest

• a contra entry

• cash takings

• personal drawings

An increase in drawings will result in

• an increase in long term liabilities

• a decrease in capital

• a decrease in current liabilities

• an increase in capital

A debt is considered a BAD DEBT if the debtor

• pays late

• fails to pay

• clears the debt in parts

• does not use money to pay

When a trial balance fails to agree, the difference is recorded in the

• control account

• suspense account

• reserve account

• provision account

The formula for working capital is

• total assets less total liabilities

• fixed assets less current liabilities

• fixed assets less current assets

• current assets less current liabilities

Mr.Jones business began the month with an overdraft of $1200. During the month, total deposits were @2000 and total payments were $600. What was the cash book balance at the end of the month?

• Debit balance $200

• credit balance of $200

• Credit balance of $600

• Debit balance of $1400