Accounting - Test 2

Quiz
•
Fun
•
1st - 10th Grade
•
Hard
Thai Nguyen
Used 7+ times
FREE Resource
15 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
Which of the following accounting concepts means that similar items should receive a similar accounting
treatment?
A Going concern
B Accruals
C Matching
D Consistency
2.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
A business can make a profit and yet have a reduction in its bank balance. Which ONE of the following
might cause this to happen?
A The sale of non-current assets at a loss
B The charging of depreciation in the statement of profit or loss
C The lengthening of the period of credit given to customers
D The lengthening of the period of credit taken from suppliers
3.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
A business sells $100 worth of goods to a customer, the customer pays $50 in cash immediately and will pay the remaining $50 in 30 days' time.
Debit cash $50, credit payables $50, credit purchases $50
Debit payables $50, debit cash $50, credit purchases $100
Debit purchases $100, credit payables $50, credit cash $50
Debit purchases $100, credit cash $100
4.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
Which of the following statements is/are TRUE or FALSE?
1 Cash purchases are recorded in the purchases day book.
2 The sales day books is used to keep a list of invoices received from suppliers.
Both statements are TRUE
Both statements are FALSE
Statement 1 is TRUE and statement 2 is FALSE
Statement 1 is FALSE and statement 2 is TRUE
5.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
A business commenced with capital in cash of $1,000. Inventory costing $800 plus sales tax is purchased on credit, and half is sold for $1,000 plus sales tax, the customer paying in cash at once. The sales tax rate is 20%.
What would the accounting equation after these transactions show?
Assets $1,800 less Liabilities $200 equals Capital $1,600
Assets $2,200 less Liabilities $1,000 equals Capital $1,200
Assets $2,600 less Liabilities $800 equals Capital $1,800
Assets $2,600 less Liabilities $1,000 equals Capital $1,600
6.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
Which of the following costs may be included when arriving at the cost of finished goods inventory for inclusion in the financial statements of a manufacturing company?
1 Carriage inwards
2 Carriage outwards
3 Depreciation of factory plant
4 Finished goods storage costs
5 Factory supervisors' wages
1 and 5 only
2, 4 and 5 only
1, 3 and 5 only
1, 2, 3 and 4 only
7.
MULTIPLE CHOICE QUESTION
3 mins • 1 pt
You are preparing the final accounts for a business. The cost of the items in closing inventory is $41,875. This includes some items which cost $1,960 and which were damaged in transit. You have estimated that it will cost $360 to repair the items, and they can then be sold for $1,200.
What is the correct inventory valuation for inclusion in the final accounts?
$39,915
$40,755
$41,515
$42,995
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