Accounting - Test 2

Accounting - Test 2

1st - 10th Grade

15 Qs

quiz-placeholder

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Accounting - Test 2

Accounting - Test 2

Assessment

Quiz

Fun

1st - 10th Grade

Hard

Created by

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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