Grade - 11-W - Diagnostic Test - 2nd Term

The main aim of Accounting is

• Maintain ledgers for every assets and liabilities

• To provide information to users

• Produce a trial balance

• To record every single transaction

Credit notes are issued

• When the seller delivers the goods to the buyer

• When the goods purchased on cash are returned to the seller by the buyer

• when there is not enough money in the bank to pay to the Seller

• When goods purchased on credit are returned by the buyer to the seller

Source documents gives information that is recorded in the __________

• Trial Balance

• Prime Entry Books

• General Journal

• Income Statement

Which of the following best describes the purpose of a purchase invoice?

• Issued by a supplier as a request for payment

• Sent to a supplier as a request for a supply

• Issued by a supplier listing details of recent transactions

• Sent to the supplier as a notification of payment

Discount allowed is a/an ______________.

• Expense

• Asset

• Income

• Liability

Select all asset accounts listed below.

• Accounts Payable

• Cash

• Supplies

• Owner's Capital

$200 rental payment was not recorded in the books. What is type of this error ?

• Error of omission

• Error of commission

• Error of original entry

• Compensating error

A credit purchase of goods $1200 from Calvin trading was recorded in Clara trading account. Name the error.

• Error of commission

• Error of omission

• Error of principle

• Compensating error

Both salaries expense and commission income were overstated by $900. State the correction of error.

• Dr Capital Cr salaries exp

• Dr salaries expense cr commission income

• Dr commission income Cr salaries expense

Purchase of a motor van costing $1000 was recorded in motor expenses account.

• Error of omission

• Error of commission

• Error of original entry

• Error of principle