Term 3 Form 4s Practice Quiz. POA

A businessman bought a new computer for $6000. He paid $4 000 in cash and traded in his old computer. What is the entry to record this transaction?

• Dr. Old computer $2,000 Dr. Cash $4,000 Cr. New computer $6,000

• Dr. New Computer $4,000 Dr. cash $2,000 Cr. Old computer $6,000

• Dr. Old Computer $6,000 Dr. cash $4,000 Cr. new computer $2,000

• Dr. New Computer$6,000 Cr. Old computer $2,000 Cr. cash $4,000

 K. Khan, a debtor of A and B Enterprises, settles his debt of $120 less discount of 2 1/2%, by cheque. How should the double entry be recorded in the books of A and B Enterprises?

• Dr. K. Khan $117 Dr. Discount received $3 Cr. bank $120

• Dr. Bank $117 Dr. Discount allowed $3 Cr. K. Khan $120

• Dr. K. Khan $117 Dr. Discount allowed $3 Cr. Bank $120

• Dr. Bank $117 Cr. Discount received $3 Cr K.Khan $120

Mr A. Jones paid $250 in cash for repairs to machinery. This transaction was entered in the cash book and posted to the ledger. The double entry involved would be

• Debit cash account Credit repairs account

• Debit cash account Credit machinery account 

• Debit repairs account Credit Cash account

• Debit A. Jones account Credit cash account 

Which of the following BEST describes the 'double entry' system of accounting?

• A ledger account must have two sides

• An account must be written twice in the ledger

• Each transaction must be written in two subsidiary books

• Each transaction must have a debit entry and a credit entry

Which of the following financial statements shows the value of a business' assets?

• Balance sheet

• Trading Account

• Cash Flow Statement

• Profit and Loss Account

The MAIN internal users of accounting information are

• Managers

• Competitors

• Local Communities

• Government Agencies

Credit notes issued for goods returned by a customer will be entered firstly in the 

• returns inwards book 

• returns outwards book 

• sales returns account

• purchases returns account

Which of the following lists of activities shows the correct order of the stages in the accounting cycle, before final accounts?

• Posting to ledger, journalizing, trial balance

• Posting to ledger, trial balance, journalizing

• Journalizing, posting to ledger, trial balance

• Journalizing, trial balance, posting to ledger

The attached information refers to the assets and liabilities of Mr. Jones.
From the information above, Mr. Jones' capital amount is

• $405

• $450

• $850

• $975

 View the attached balances at the end of a financial period.

What is the TOTAL amount for the assets?

• $12,000

• $13,000

• $14,000

• $15,000