REVISION SET 2

What will be the next process after a business transaction has occurred?

• Posting to general ledgers.

• Recording into journals.

• Preparing Trial Balance.

• Preparing Statement of Comprehensive Income.

Which of the following source documents should be issued by the seller upon the return of defected goods by the customer?

• Debit note.

• Receipt.

• Credit note.

• Invoice.

Which of the following statements is INCORRECT regarding Purchases Journal?

• It shows the subsidiary of Accounts Payable.

• It provides the account balance.

• Each entry should begin with transaction date.

• It shows the total of purchases at the end period.

The steps in preparing a Trial Balance include all of the following; EXCEPT

• listing the account titles and their balances.

• totalling the debit and credit columns.

• proving the equality of two columns.

• transferring journal amounts to ledger accounts.

Under the accrual basis of accounting; revenues are reported in the accounting period when the

• cash received from the customer.

• end of the month or year.

• expenses are greater than revenues.

• service or goods have been delivered.

‘Unearned Rental Revenue’ is in which account classification group?

• Current asset.

• Current liabilities.

• Fixed assets.

• Owner’s equity.

Which is the correct adjustment entry to record depreciation expense at the end of the accounting period?

• DEBIT to depreciation expense, CREDIT to cash

• DEBIT to accumulated depreciation, CREDIT to expense depreciation

• DEBIT to depreciation expense, CREDIT to accumulated depreciation

• DEBIT to accumulated depreciation, CREDIT to cash

What type of accounts are Accumulated Depreciation?

• Expenses.

• Revenues.

• Contra Assets.

• Contra Liabilities.

Bank Reconciliation statement compares a Bank Statement with

• a Cash Payment Journal.

• a Cash Receipt Journal.

• a Financial Statements.

• a Cash Book.

What will be the journal entry for monthly standing instruction to deduct the bank account to pay salary?

• Dr. Bank, Cr. Salaries Expense

• Dr. Bank, Cr. Salaries Revenue

• Dr. Salaries Expense, Cr. Bank

• Dr. Salaries Revenue, Cr. Bank