Accounting Quiz (0452_s24_qp_11)

Which task is performed by a book-keeper?

• analysing accounting ratios

• interpreting the income statement

• posting entries from the journals to the ledgers

• preparing a statement of financial position

Which statement is correct?

• Accounting involves measuring profits and losses.

• Accounting is the recording of financial transactions.

• Book-keeping involves communicating financial data.

• Book-keeping requires the use of ratio analysis.

In which book of prime entry does a trader record cash discount received?

• cash book

• general journal

• purchases journal

• sales journal

The analysis columns of a petty cash book show the following totals. How should these totals be posted to the ledger?

• credit bank account with $51

• credit postage account with $20 and stationery account with $31

• debit cash account with $51

• debit postage account with $20 and stationery account with $31

Which business documents are not entered in the books of prime entry?

1. credit note

2. debit note

3. invoice

4. statement of account

• A. 1 and 3

• B. 1 only

• C. 2, 3 and 4

• D. 2 and 4 only

A trader has the following ledger account. What does the balance on 1 January, year 2 represent?

• heat and light outstanding

• heat and light refunded

• overpayment of heat and light

• prepayment of heat and light

Which accounting statement prepared by the treasurer of a sports club provides a summary of all the monies received and paid out during the financial year?

• bank reconciliation statement

• income and expenditure account

• receipts and payments account

• statement of financial position

Which statement about a trial balance is correct?

• It is a list of the ledger balances on a particular date.

• It is part of the double entry system of book-keeping.

• It is proof that all items have been posted to the correct accounts.

• It is proof that all transactions have been entered in the books of account.

What was the effect of this error on his statement of financial position?

• $220 overstated, $20 understated, $240 overstated

• $20 overstated, $220 understated, $240 overstated

• $220 understated, $20 overstated, $240 understated

• $20 understated, $220 overstated, $240 understated

Which double entry will correct this?

• credit suspense $18, debit insurance $18

• credit suspense $36, debit insurance $36

• debit insurance $18, credit suspense $18

• debit insurance $36, credit suspense $36