Revision

1. The amount brought in by owner of the business should be credited to which account?

• Drawings

• Capital

• Cash

• Purchases

2. How much types a transaction has?

• One

• Two

• Three

• Four

3.Transactions are initially recorded in the?

• Ledger

• Book of prime entry

• Income Statement

• Documents

4. Of the following account types, which would be increased by a debit?

• Assets and Drawings

• Liabilities and Income

• Assets and Expenses

• Income and Expenses

5. Sales made to Ahmad on credit should be debited to?

• Sales

• Accounts Payable:Ahmad

• Accounts Receivable:Ahmad

• Cash

6. The abbreviations for debit and credit (Dr. and Cr.) come from what language words?

• (a) Latin, debere and credere

• (b) Latin, debtor and creditor

• (c) Greek, debere and credere

• (d) Greek, debtor and creditor

7. Which one of the following is called book of original entry?

• General Journal

• General Ledger

• Trial Balance

• Cash Book

8. Commission received is an example of?

• Real account

• Nominal account

• Profit and Loss account

• Personal account

9. Which discounts are shown as a deduction in invoice?

• Cash Discounts

• Trade Discounts

• Discounts Allowed

• Discounts Received

10. What is the purpose of giving cash discounts?

• To encourage bulk purchases

• To encourage prompt payment

• To reduce price of products