Accounting Quiz

Which task would be carried out by a book-keeper?

• A comparison of financial statements between years

• B preparation of financial statements

• C provision of information for decision-making

• D recording financial transactions

What is the accounting equation?

• A assets = capital - liabilities

• B assets = liabilities - capital

• C assets - liabilities = capital

• D assets + capital = liabilities

The discount column on the debit side of a trader’s cash book totalled $1300 and the discount column on the credit side totalled $700. How much discount did the trader receive?

• A $600

• B $700

• C $1300

• D $2000

Jabari maintains a petty cash book using the imprest system. The imprest is restored at the end of each month. Which amount restores the imprest at the end of a month?

• A the amount left in petty cash less the total of vouchers received

• B the amount left in petty cash plus the total of vouchers received

• C the imprest amount less the total of vouchers received

• D the total of vouchers received

Which statement about a trial balance is correct?

• A It assists in locating arithmetical errors in the book-keeping records.

• B It is proof that the entries in the ledger accounts are free from error.

• C It reveals all book-keeping errors.

• D It shows ledger account errors only.

What is an example of a compensating error?

• A payment for office equipment repairs was debited to the office equipment account.

• B A purchase of goods from C Jones was credited to the account of C Johns.

• C The sale of goods, $65, to A Aziz was entered in the books as $56.

• D The wages account was undercast by $100 and the rent account was overcast by $100.

Why is a sales ledger control account usually prepared by a different member of staff than the person who maintains the sales ledger?

• A to deter fraud

• B to locate errors

• C to provide an instant total of trade receivables

• D to speed production of financial statements

On 1 January, Zac entered the cost of repairing equipment, $420, in the equipment account. On 31 December, depreciation of 20% per annum, using the straight-line method, was charged on the balance of the equipment account. What was the overall effect on the book value of the equipment on 31 December?

• A $84 understated

• B $336 overstated

• C $420 overstated

• D $504 understated

Atif depreciates his motor vehicles at a rate of 20% per annum using the reducing balance method. On 1 May 2021, Atif owned motor vehicles which cost $35000. At that date, the motor vehicles had been depreciated by $12600. What was the balance on Atif’s provision for depreciation account on 1 May 2022?

• A $17080

• B $17920

• C $19600

• D $22400

The financial year of Yeung ends on 31 March. On 1 April 2021, he purchased a machine for $4000. He estimated that it would have a useful working life of 3 years and a residual value of $100. Yeung uses the straight-line method of depreciation. The machine was sold on 1 April 2022 for $1500. What was the loss on disposal?

• A $1100

• B $1200

• C $2400

• D $2500