Term 3 Form 4s PRactice Quiz POA III

Control accounts are kept in order to assist management in

• Locating Errors

• Increasing Profits

• Limiting Drawings

• Limiting Expenditure

Portap bought inventory for $500 on credit. In which book of prime entry will this be recorded?

• Cash Book

• Sales Journal

• General Journal

• Purchases Journal

Which of the following should be entered in a sales ledger control account?

• Credit Sales

• Cash Sales

• Cost of Sales

• Discount Received

What would be the effect on a firm's Statement of Financial Position:

"Purchase of equipment on credit?"

• Asset increased; Liability increased

• Asset increased; Liability decreased

• Asset decreased; liability increased

• Asset decreased; liability decreased

Under which of the following conditions would a trial balance still be balanced?

I. A debit entry was left out

II. A transaction was completely left out

III. Both a debit entry and a credit entry were overstated by the same amount

IV. Both a debit entry and a credit entry were understated by the same amount

• I, II and III only

• I, II and IV only

• I, III and IV only

• II, III and IV only

Control accounts are very useful checking devices.

They provide total trade receivables and trade payables. Which of the following ledgers contain individual personal accounts?

I. Sales ledger

II. Purchases Ledger
III. General Ledger

• I only

• II only

• I and II only

• II and III only

The debit side of a trial balance exceeds the credit side by $1 200.

A suspense account should therefore be opened with a balance of

• I only$1 200 on the debit side

• $1 200 on the credit side

• $2 400 on the debit side

• $2 400 on the credit side

Inventory was purchased from M Smith on credit for $ 2,400 but posted to N Smith's account.

Which of the following journal entries will correct the error?

• Debit M Smith $2 400  Credit Purchases $2 400

• Debit M Smith $2 400  Credit N. Smith $2 400

• Debit Purchases $2 400 Credit M. Smith $2 400

• Debit N. Smith $2 400  Credit M. Smith $2 400

The item attached refers to the following information of the Sales Ledger Control Account of a business for the month of April.

From the Sales Ledger Control Account attached, what is the value of sales for the month of April?

• $2 050

• $3 100

• $3 550

• $5 600

1. Which book of prime entry is a supplier invoice recorded in?

• Sales day book

• Purchase day book

• Cash book