ACC 101 QUIZ

The capital of a business is 1/3 of its total assets, The total of its liabilities amount to £600,000. What is the amount of the total assets?

• £200,000

• £400,000

• £300,000

• £900,000

If the firms average inventory is £200,000 and the closing inventory is £120,000, What is the opening inventory

• £570,000

• £300,000

• £280,000

• None of the above

Withdrew cash £800 from bank for office use. The entries will be:

• DR cash under bank column and CR Bank under cash column

• DR Bank under bank column and CR Cash under cash column

• DR Bank under Cash column and CR Cash under Bank column

• None of the above

A company earned £250,000 profit from a goods costing £1,250,000. The sales margin is

• 50%

• 40%

• 20%

• 16.7%

Which of the these errors would be disclosed by the trial balance?

• A cash sales of £40,000 was debited to Sales account and credited to cash account

• A purchase of £30,000 was completely omitted from the books

• Credit sales of £20,000 debited to supplier's account and credited to sales account as £20,000

• None of the above

In which of the following is purchase of Non-current Assets on credit first recorded?

• Purchase day book

• Cash account

• Asset account

• Journal

Stock(31/12/2019) £800; Purchase of flour £2,450; Sales £4,745; Wages of bakery staff £675; Carriage outwards £50; Salary of Administrative staff £225; Stock(31/12/2020) £940; Capital £1,540. Calculate the cost of goods available for sales

• £3,925

• £3,250

• £2,310

• £2,985

Stock(31/12/2019) £800; Purchase of flour £2,450; Sales £4,745; Wages of bakery staff £675; Carriage outwards £50; Salary of Administrative staff £225; Stock(31/12/2020) £940; Capital £1,540. Calculate the cost of sales

• £3,925

• £3,250

• £2,310

• £2,985

Stock(31/12/2019) £800; Purchase of flour £2,450; Sales £4,745; Wages of bakery staff £675; Carriage outwards £50; Salary of Administrative staff £225; Stock(31/12/2020) £940; Capital £1,540. Calculate the Gross profit

• £820

• £1,495

• None of the above

• £770

Stock(31/12/2019) £800; Purchase of flour £2,450; Sales £4,745; Wages of bakery staff £675; Carriage outwards £50; Salary of Administrative staff £225; Stock(31/12/2020) £940; Capital £1,540. Calculate the Net profit

• £545

• £1,220

• -£545

• £595