Accounting Quiz Chapters 1 - 17

The total of the sales returns journal is posted to the sales returns account. Where will the double entry appear?

• A bank account

• B creditors’ accounts

• C debtors’ accounts

• D sales account

Which business document shows all the transactions that have taken place with a customer during a month?

• A credit note

• B debit note

• C invoice

• D statement

Which account could appear in either the debit column or the credit column of a trial balance?

• A bad debts

• B bank

• C drawings

• D sales

What is an income statement (profit and loss account)?

• A list of all the assets and liabilities of a business at a particular date.

• B A list of all the balances in the ledger accounts of a business at a particular date.

• C A statement of receipts and payments of a business during a particular period.

• D A summary of income and expenditure of a business during a particular period.

Which entry is made to reduce a provision for doubtful debts?

• A DR income statement (profit and loss account) CR provision for doubtful debts

• B DR provision for doubtful debts CR income statement (profit and loss account)

• C DR provision for doubtful debts CR trade receivables (debtors)

• D DR trade receivables (debtors) CR provision for doubtful debts

A shop makes all its sales for cash. Where does the sales account appear?

• A cash book

• B nominal (general) ledger

• C sales journal

• D sales ledger

The cash book showed a balance in the bank of $1000 Dr. On the same date, the bank statement showed a balance in the bank of $900 Dr. Which could be the reason for this difference?

• A bank interest received

• B payments made directly into the trader’s bank account

• C standing order for property tax paid directly by the bank

• D unpresented cheque

Businesses use financial records to prepare financial statements (final accounts). Which record is used in the preparation of the statement of financial position?

• bank statement

• cash book

• purchases journal

• sales journal

Which documents received by a business are used to write up the purchases returns journal?

• credit notes

• debit notes

• statements

• sales invoices

A business keeps a petty cash book with an imprest amount of $300. During September the following transactions take place:

imprest restored on 1 September 100

petty cash drawn from bank on 15 September 150

expenses paid from petty cash 400

What amount will be required to restore the imprest on 30 September?

• $50

• $250

• $400

• $550