PRE-UPS 2(TOPIC 3,5,6 AND 7)

A staff who wishes to obtain authorization for payment will present

• Invoice

• cheque

• Payment voucher

• receipt

Which of these is NOT a use of source documents?

• They act as proof to show that the transaction recorded in the books of accounts occurred.

• They help in the preparation of the financial statements.

• They provide better internal control and reporting.

• The help in determining loyal customers

A document sent from a seller to a buyer when the buyer has been undercharged is called

• debit note

• deduction note

• access note

• credit note

Issued by the buyer to the seller that contains information about the goods to be purchased.

• Delivery Notes

• Payment Voucher

• Credit Notes

• Purchase Order

A form issued by the bank for any transaction of deposits or withdrawals of money from customers.

• Bank Statement

• Bank Slip

• Cheque Stubs

• Payment Voucher

This document is issued by the seller when goods have been returned by the purchaser due to thier being damaged, faulty or supplied to the wrong sprecification, or when an overcharge has been made in an invoice.

• Debit Note

• Credit Note

• Invoice

• Receipt

A ledger that is summarized in a single general ledger account.

• Controlling Ledger

• Subsidiary Ledger

• Accounts Payable

• Sub account

Gross profit will result if :

• operating expenses are less than net income

• net sales are greater than operating expenses

• net sales are greater than cost of goods sold

• operating expenses are greater than cost of goods sold

A list of assets, liabilities and an owner’s equity of a business entity as of a specific date is known as

• a statement of profit or loss

• a statement of financial position

• a statement of comprehensive income

• trial balance

The following items are recorded in the general journal except :

• purchase of non-current assets on credit

• purchase of goods on credit from supplier

• withdrawal of goods by the owner for personal used

• opening entries, adjusting entries and closing entries