Acc102

A non-trading organization is MAINLY 4' concerned with

(A) importing goods for resale

(B) trading only with wholesalers

(C) providing various services for its members

(D) making maximum profit for the proprietor

• A

• B

• C

• D

Amalgamated Components was a private company until it admitted additional shareholders by selling shares on the Stock Exchange.

Amalgamated Components can now be described as a

(A) Partnership

(B) Statutory Corporation

(C) Public Limited Company

(D) Private Limited Company

• A

• B

• C

• D

Cash Sales $10,000

Credit Sales $45,000

Stock at Hand $40,000

Drawings $8000

Cash Purchase $12000

Credit Purchase $20200

From the information above, what is the correct closing total for the Sales Account?

(A) $47 000

(B) $49 000

(c) $55 000

(D) $59 000

• A

• B

• C

• D

Which of the following would NOT appear in a cash book?

(A) Payment for goods $100

(B) Goods sold on credit $100

(C) Goods sold for cheque $100

(D) Goods bought for cash $100

• A

• B

• C

• D

The balance of an Accounts Payable's Account is entered in the balance sheet under the heading

(A) capital

(B) fixed assets

(C) current assets

(D) liabilities

• A

• B

• C

• D

The MAIN purpose of preparing -financial statements is to

(A) determine gross Profit

(B) make informed financial decisions

(C) meet the objectives of the business

(D) determine whether capital has increased

• A

• B

• C

• D

In order to avoid writing numerous cheques for small amounts, a firm may set up a

(A) general ledger

(B) general journal

(C) petty cash fund

(D) standing order with a bank

• A

• B

• C

• D

A businessman offers a discount for prompt payment for goods purchased. Under which column in his Three-Column Cash Book, would this be entered?

(A) Bank

(B) Cash

(C) Discount allowed

(D) Discount received

• A

• B

• C

• D

When a proprietor withdraws cash or other assets from a business. what effect does it have on drawings or capital?

(A) Capital is decreased.

(B) Capital is increased.

(C) Drawings are decreased.

(D) Neither drawings nor capital is affected.

• A

• B

• C

• D

The Trial Balance is prepared by using balances from the

(A) Ledger

(B) Journal

(C) Sales book

(D) Purchases book

• A

• B

• C

• D