Accounting Revision 2

A cheque is the source document that is issued to pay for expenses.

• True

• False

Cost of Sales is an …, it is money that the business pays when purchasing Trading Stock.

When you receive a trade discount, the price that you pay is less than the original selling price.

• True

• False

Increases on the credit side and decreases on the debit side

The debtor returned damaged goods.

A summary of Balance Sheet and Nominal accounts of all transactions

• Trial Balance

• Cash Receipt Journal

• Cash Payment Journal

• General ledger

When the price of goods decreases, the demand for the goods will …

• remain the same.

• increase.

• decrease.

• none of the above

The advantage to the business for selling goods on credit is that

• more debtors buy on credit

• more creditors buy with cash.

• Few debtors buy on credit

• all of the above.

The following accounts are examples of Assets:

• Bank, Vehicles, Stationery, Trading Stock

• Bank, Equipment, Debtors' Control, Trading Stock

• Bank, Trading Stock, Creditors' Control, Sales

• Bank, Sales, Cost of Sales, Trading Stock

If you sell Trading stock for R2 500, and the mark-up is 66⅔% on cost. The cost price of the Trading Stock is …

• R1 666,67.

• R1 666,75.

• R1 500.

• R4 166, 67.