CSEC Principles of Accounts

Which one of the following entries correctly records the purchase of a vehicle on credit from Burkes Motors?

• Debit: Vehicle, Credit: Bank

• Debit: Purchases, Credit: Burkes Motors

• Debit: Burkes Motors, Credit: Vehicle

• Debit: Vehicle, Credit: Burkes Motors

Which of the following is incorrect about the balance sheet equation?

• Assets $18270 Liabilities $5290 Capital $12980

• Assets $9340 Liabilities $3120 Capital $6220

• Assets $15160 Liabilities $6380 Capital $7780

• Assets $12230 Liabilities $1390 Capital $10840

Which of the following statement is correct?

• Sold goods on credit (- Stock +Creditor)

• J. Charles lent us $1000 (+ Cash + Loan form Charles)

• We paid a creditor/payable by cheque. (- Bank -Debtor/Receivables)

• Bought goods paying by cheque. (- Bank - Creditors/Payables)

Which of the following is incorrect?

• To record an increase in liabilities - Debit the liabilities account.

• To record an increase in assets - Debit the assets account.

• To record an increase in capital - Credit the capital account.

• To record a decrease in liabilities - Debit the liabilities account.

Which of the following BEST describes the meaning of 'Sales'?

• Items sold for cash on credit.

• Assets sold on credit

• The sale of items bought previously.

• Sale of items previously included in 'Purchases'

Which of the following BEST describes a trial balance?

• Is the final account in the books.

• Shows all assets balances.

• Is a list of balances on the books.

• Discloses the financial position of a business.

When should the trial balance totals differ?

• Only when it is drawn up by the accountant.

• When drawn up before the profit and loss account is prepared

• If drawn up halfway through the financial year.

• Never.

The balance sheet heading will specify a

• Period Of Time

• Point In Time

A sale of goods to TJ Williams totalling $400 is subject to 25% trade discount if paid within a month. How much will be debited to TJ Williams' account?

• $280

• $285

• $300

• $400

What is the purpose of an income statement?

• calculate the bank balance

• calculate net assets

• calculate sales

• calculate net profit