Accounting Quiz

Which transaction is recorded in the sales ledger?

• A. cash sales

• B. cheque paid to a creditor

• C. cheque received from a debtor

• D. sale of fixed assets

Which book of prime entry is part of the double entry system?

• A. cash book

• B. general journal

• C. purchases journal

• D. sales journal

Y allows X trade discount of 25% and cash discount of 5% if invoices are paid within 30 days. X purchases goods with a list price of $1200 from Y. Which amount will be entered in X’s purchases journal?

• A. $840

• B. $855

• C. $900

• D. $1200

Which transaction is entered in the general journal?

• A. cash paid to supplier

• B. cash received from customer

• C. machinery bought on credit

• D. stock bought on credit

Which of these errors will affect the balancing of the trial balance?

• A. A payment from Sue is credited to the account of Marsha.

• B. A purchase of machinery is debited to the Purchases account.

• C. An invoice is entered in the sales journal

• D. The purchases journal is over-added.

A trial balance fails to agree. The credit column totals $10000. It is found that the sales book has been overcast by $100 and goods sold to Y on credit for $200 have been incorrectly debited to X. What is the total of the debit column of the trial balance?

• A. $9700

• B. $9900

• C. $10100

• D. $10300

Which of the following states the correct order of the stages in the accounting cycle, before Final Accounts?

• A. Adjusting entries , trial balance. final accounts

• B. Posting to the ledger, adjusting entries trial balance,

• C. Journalizing, trial balance, posting to the ledger

• D. identifying transactions, posting to the ledger, trial balance.

What is the net profit of a trader who has an opening capital of $75000, closing capital of $98000, and drawings of $12000 during the year?

• A. $8000

• B. $11000

• C. $23000

• D. $35000

What type of error would require correction through a Suspense account?

• A. Incorrect addition in the sales journal.

• B. Posting an invoice to the wrong account in the purchases ledger.

• C. Entering an invoice for $1052 as $1025 in the purchases journal.

• D. Overstating both the Wages account and the Sales account by $1000.

What are the common errors that can cause the totals of a trial balance to not agree?

• A. A credit note is entered in the Sales Journal.

• B. A sales invoice for $600 is omitted from the Sales Journal.

• C. A sales invoice for $800 is entered in the Sales Journal at $620.

• D. A sales invoice for $350 is entered in the Sales Journal but not included in the monthly total.