IGCSE Accounting Quiz

A wages account will be found in the

• private ledger

• nominal ledger

• cash book

• petty cash book

Which of the following pairs of accounts usually have credit balances b/d?

• capital and expenses

• assets and expenses

• income and assets

• liabilities and income

Where should trade discount be shown?

• the cash book

• personal accounts in the ledger

• a discounts account

• an invoice

What is the purpose of preparing a trial balance?

• to check the arithmetical accuracy of the book-keeping

• to find the net profit or net loss

• to check that all transactions have been included in the accounts books

• to prove that there are no book-keeping errors

What does a debit balance b/d on the insurance account indicate?

• A liability and a prepayment

• A liability and an accrual

• An asset and an accrual

• An asset and a prepayment

A machine costing 5000 is depreciated at 20% per annum by the straight line method. It is sold after three years for 2500. Which one of the following is true?

• The firm has made a 500 loss

• The firm has made a 500 profit

• The firm has made a 2500 loss

• The firm has a made a 2500 profit

Ignoring work in progress, which of the following statements correctly defines factor cost of production?

• Raw materials purchased plus indirect costs

• Prime cost plus factory overhead

• Prime cost minus factory overhead

• Prime cost plus direct costs

A business sells goods for cash. What are the entries in the books of the seller?

• Debit Credit cash sales

• Debit Credit cash debtor

• Debit Credit sales cash

• Debit Credit debtor cash

Which item would be recorded on the debit side of a sales ledger control account?

• bad debts

• credit sales

• payments from debtors

• sales returns

Which transaction would not be entered in a business’s cash book?

• purchase of goods from T Patel, paying by cheque

• purchase of goods by a customer, paying in cash

• purchase of goods from J Walsh on credit

• purchase of a new machine, paying by cheque