Summer Review - 4NH Accounts

X sends back $800 of faulty goods to Y. In which book of prime entry would Y record this transaction?

• General Journal

• Purchases Journal

• Sales Journal

• Sales Return Journal

If the following lists of assets found on the Balance Sheet of a retail trader were to be arranged in order of liquidity, the sequence would be

• Motor Van, building, bank, fixtures, cash debtors

• Cash, fixtures, debtors bank, building, motor van

• Cash, bank fixtures, debtors, motor ban, building

• Cash, bank, debtors, fixtures, motor van, building

Which of the following are real accounts?

• Furniture a/c

• Debtors a/c

• Capital a/c

• Sales a/c

The assets of a business total $3,200 and the liabilities total $820. What is its capital?

• 2, 038

• 2, 380

• 4,000

• 4,020

Which of the following states the correct order of the stages in the accounting cycle?

• journalizing, posting to the ledger, trial balance, final accounts

• journalizing, trial balance, posting to the ledger, final accounts

• Posting to the ledger, journalizing, trial balance, final accounts

• Posting to the ledger, trial balance, journalizing, final accounts

A retailer purchases goods worth $3,000. He receives 30% trade discount and 5% cash discount. How much should he pay for the goods?

• 1,995

• 2,095

• 2,100

• 2,850

Mrs. Green is a dry goods merchant. Which of the following would result in a debit to her cash account?

• bought goods for cash

• sold goods for cash

• paid cash to office cleaner

• paid installment on loan

The trial balance is a statement which helps us to

• discover all types of errors

• prove that transactions have been recorded in the proper accounts

• determine the arithmetic accuracy of postings

• prove that transactions have been correctly analyzed.

A businessman bought a new typewriter for $6000. He paid $4000 in cash and traded in his old typewriter. What is the entry to record this transaction?

• Debit: New typewriter - $6000

  Credit: Old typewriter - $2000 and Cash - $4000

• Debit: Old typewriter - $2000 and cash - $4000

  Credit: New typewriter - $6000

• Debit: New typewriter - $4000 and cash- $2000

  Credit: Old typewriter- $6000

Which of the following would be regarded as examples of current assets?

• vehicles, equipment, machinery, typewriter

• debtors, stock, creditors, cash at bank

• Bank overdraft, machinery, debtors, stock

• stock, cash at bank, debtors, cash in hand