Accounting Rev Term 3

What is " gross profit"?

• The amount that is added to the cost price to get the selling price

• The amount that is added to the selling price to get the cost price

What is it called when a credit customer owes the business money?

• A debtor

• A creditor

In which journal would the businesses electricity payment be recorded?

• Cash Payments Journal

• Cash Receipts Journal

• Debtors Journal

What is the document used when you receive money?

• Receipt

• Payment

• Invoice

• Credit Note

What is the source document used when the retailer sells goods to the customer on credit?

• Equipment

• Sales

• Trading Stock

• Cost of Sales

What is it called when the goods the retailer buys to sell to customers?

• Original invoice

• Duplicate Invoice

• EFT

• Receipt

What is the formula to workout selling price (SP)?

• CP x (100 + MU%)

• CP + (MU% X CP)

• SP x (100/100 + MU%)

What is placed in the credit column of the trial balance?

• Cost of Sales

• Sales

• Debtors Allowances

When a debtors return goods that he previously bought on credit

• Debtors

• Debtors Allowances

• Discount

• Credit Note

What is the formula to workout cost price (CP)?

• SP + 1/100

• SP X 1/100+ MU

• SP + 1/100+ MU