QUIZ 4 : ACCOUNTING CYCLE

The following items are recorded in the general journal except :

• purchase of non-current assets on credit

• purchase of goods on credit from supplier

• withdrawal of goods by the owner for personal used

• opening entries, adjusting entries and closing entries

Which of the following is correct :

• Paid salaries by cash : Dr salaries; Cr cash

• Return goods previously bought on credit : Dr Purchases; Purchase returns & allowance

• Took cash for personal used : Dr Cash; Cr Drawings

• Received refund rent by cheque : Dr Rental; Cr Bank

A cash discount on purchase should be debited to

• a revenue account

• an expenses account

• a debtors account

• a creditors account

A credit note received from a supplier should be recorded in the

• cash receipts journal

• cash payment journal

• general journal

• purchase journal

The sales journal is

• used to record all sales

• used only to record sales on credit

• used only to record cash sales

• none of the above

The purchase journal is

• used only to record credit purchases

• used only to record cash purchases

• used to record all purchases

• all of the above

A credit note is used as documentation in a business for a journal entry that requires a debit to

• Sales returns and credit to Accounts receivable

• Purchase returns and credit Accounts payable

• Accounts receivable and credit Sales returns

• Accounts receivable and credit Sales

Freight-in is charged as part of costs of goods sold because

• it is not part of expenses

• it is an expense connected with purchasing of goods

• freight-out is charged to the statement of Profit or Loss and other Comprehensive Income

• it is not an item in the Statement of Financial Position

All of the following are true about cash discount except

• to encourage customers to pay promptly

• to encourage customer to buy in large quantity

• it is received or given for credit purchase or sales only

• it is usually valid for a specified period of time only

Goods were sold on credit 15 August 2020. The term of credit were 2/10, n/30. The last date for payment to obtain 2% discount is

• August 25, 2020

• August 24, 2020

• August 26, 2020