Year 11 Mock Revision 2

Tracey runs a clothing store. She sold a computer with a net book value of $2000 for $1800. Cash

was received but no entries had been made in any accounts.

What is the effect of correcting this error on the statement of financial position?

• non-current assets decrease $1800

  current assets increase $1800

• non-current assets decrease $1800

  current assets increase $2000

• non-current assets decrease $2000

  current assets increase $1800

• non-current assets decrease $2000

  current assets increase $2000

The bank statement of a business showed a bank overdraft of $1640 on 1 October 2017.

At that date there were uncredited deposits of $380 and unpresented cheques of $460.

What was the cash book balance on 1 October 2017?

• $1560 credit

• $1560 debit

• $1720 credit

• $1720 debit

What are the sources of information for entries in control accounts?

• bank statements

• books of prime entry

• ledger accounts

• sales invoices

A trader provided the following information.

What was the purchases ledger control account balance on 31 March?

• $7 000

• $9 000

• $11 000

• $13 000

Ryan bought a computer, cost $800, and some ink cartridges, cost $50, for use in the business.

Both of these amounts were debited to the purchases account.

What was the effect of this error on the income statement for the year?

• cost of sales overstated 800

  expenses understated 850

• cost of sales overstated 850

  expenses understated 50

• cost of sales understated 800

  expenses overstated 850

• cost of sales understated 850

  expenses overstated 50

For which non-current assets is the revaluation method of depreciation most appropriate?

• loose tools

• motor vehicles

• office equipment

• plant and machinery