ICAEW CFAB - Accounting - Chapter 4 Quiz

The credit side of a journal entry may:

• A Increase sales

• B Increase expenses

• C Decrease trade payables

• D Increase trade receivables

The nominal ledger:

• A Is the record of all transactions not directly recorded by the computerised accounting system

• B Is used to record only transactions relating to receivables

• C Is used to record only transactions relating to payables

• D Is the record of an entity’s financial transactions

In a T account a debit entry would be made in the:

• A Left hand side

• B Right hand side

A debit entry in a T account will:

• A Decrease an asset

• B Decrease an expense

• C Increase a liability

• D Decrease capital

A credit entry in a T account will:

• A Decrease an asset

• B Increase an expense

• C Decrease a liability

• D Decrease capital

When a credit customer pays an invoice for £120 including VAT at 20%, the credit entry in the VAT ledger account will be:

• A £120

• B £100

• C £20

• D Nil

Early settlement discounts received from suppliers will:

• A Decrease purchases

• B Decrease sales

• C Increase trade payables

• D Increase trade receivables

A journal entry does not need to contain:

• A The name of the ledger account to be debited

• B The name of the ledger account to be credited

• C Narrative

• D The name of the source document from which the information was obtained

When petty cash is topped up to the imprest amount, the credit entry is made to:

• A The petty cash book

• B Trade receivables

• C Cash at bank account

• D Trade payables

Individual credit customer accounts are kept in which ledger?

• A Payables ledger

• B Trade receivables

• C Receivables ledger

• D Nominal ledger