Chapter 2- KTQT

1 : Which of the following are books of prime entry?

• A. Sales day book and trial balance

• B. Petty cash book and accounts receivables ledger

• C. Petty cash book and journal

• D. Purchase day book and accounts payable ledger

2. 2. In which book of prime entry would a business record the part-exchange value received for a vehicle traded in when purchasing a new vehicle?

• A. The sales daybook

• B. The cash payments book

• C. The journal

• D. The non-current asset register

3 : Which one of the following best describes the purpose of a purchase invoice?

• A. It is issued by a supplier as a request for payment

• B. It is sent to supplier as a request for a supply

• C. It is issued by supplier listing details of recent transactions

• D. It is sent to the supplier as notification of payment

4 : In which book of prime entry would discounts received be recorded?

• A. Cash received book

• B. Cash payments book

• C. Sales day book

• D. Purchases day book

5. 5. Which of the following documents should accompany a return of goods to a supplier?

• A. Debit note

• B. Remittance advice

• C. Purchase invoice

• D. Credit note

6. 6. In which book of prime entry will a business record debit notes in respect of goods which have been sent back to suppliers?

• A. The sales returns day book

• B. The cash book

• C. The purchase returns day book

• D. The purchase day book

7. 7. Which of the following would be recorded in the sales day book?

• A. Discounts allowed

• B. Sales invoices

• C. Credit notes received

• D. Trade discounts

8. 8. Which one of the following provides evidence that an item of expenditure on petty cash has been approved or authorised?

• A. Petty cash voucher

• B. Record of the transaction in the petty cash book

• C. Receipt for the expense

• D. Transfer of cash from the bank account into petty cash

9. 9. How is the total of the sales day book recorded in the nominal ledger?

10. Debit Credit

• A. Receivables Ledger Receivables Control Account

• B. Receivables Control Account Receivables Ledger

• C. Sales Receivables Control Account

• D. Receivables Control Account Sales

10. 10. Are the following statements about debit entries true or false? 1 A debit entry in the cash book will increase an overdraft in the accounts.

11. 2 A debit entry in the cash book will increase a bank balance in the accounts.

• A. Both true

• B. Both false

• C. 1 true and 2 false

• D. 1 false and 2 true