Accounting Chapter 18 - Past Year MCQ

A sports club operates a shop selling running shoes to members. These shoes are purchased on credit terms from suppliers. Which item is recorded in the receipts and payments account?

• inventory of shoes
• payments to suppliers
• purchases of shoes
• shop profit or loss

How are subscriptions received and subscriptions written off recorded in a receipts and payments account?

• subscriptions received (credit) subscriptions written off (debit)
• subscriptions received (credit)
• subscriptions received (debit) subscriptions written off (credit)
• subscriptions received (debit)

Par Golf Club had a shop that sold golfing equipment to its members. The treasurer provided the following information for the shop for the year ended 31 December. What was the shop’s gross profit for the year?

• $2250
• $2350
• $2450
• $2750

Which items are included in an income and expenditure account prepared for a sports club? 1 cost of new furniture purchased during the year for the clubhouse 2 depreciation on furniture and sports equipment 3 rates for the clubhouse paid in advance for the next financial year 4 subscriptions that remain unpaid by club members at the end of the financial year

• 1 and 2
• 1 and 4
• 2 and 4
• 3 and 4

Melody is a music club. The club holds a music concert once every year. Prizes are awarded to musicians selected by a judge. The club provided the following information related to the latest music concert. What was the profit from the concert?

• $950
• $1050
• $1450
• $2100

What is included in the income and expenditure account of a tennis club?

• all amounts received and paid during the year
• all capital and revenue expenditure incurred during the year
• the closing balances on the accumulated fund
• the profit for the year from the club’s shop

A golf club sells refreshments to its members. Suppliers of refreshments were owed $250 on 1 January 2022 and $400 on 31 December 2022. Payments to suppliers during the year were $7200. The inventory at the end of the year was $100 less than the inventory at the start of the year. What was the cost of sales of refreshments for the year ended 31 December 2022?

• $7050
• $7150
• $7300
• $7450

A social club provided the following information. What was the amount of subscriptions in the income and expenditure account for the year ended 31 December 2022?

• $570
• $650
• $660
• $670

The financial year of a club ends on 30 September. During the year ended 30 September 2022, the club received an interest-free loan from a member. In which of the club’s financial statements will this appear?

• income and expenditure account and statement of financial position
• receipts and payments account and income and expenditure account
• receipts and payments account and statement of financial position
• statement of financial position only

A cricket club provided the following information. What was the balance at bank on 31 July 2022?

• $920
• $1180
• $1200
• $1300