CSEC Principles of Account Mid-Term Revision (B-2023)

The total credit of the bank column of a three-column cash book is greater than the total debit. The MOST likely reason for this situation is that:

• There was an overdraft

• Transactions were omitted from the debit side

• Some figures were overstated on the credit side

• The incorrect transactions were entered on the credit side

In the statement of financial position, expenses owing will be listed as:

• Current assets

• Current liabilities

• Non-current assets

• Non-current liabilities

Maharaj bought two cases of expired mushrooms from B & B Supermarket and returned them. In Maharaj's books, this will be recorded as a journal entry for:

• Sales

• Purchases

• Sales return

• Purchases return

Eshani's Cafeteria does not keep a complete set of accounting records. The bookkeeper has provided the following information:

Cash sales: $500

Opening accounts receivable: $700

Credit sales: $1,000

Cash received from accounts receivable: $1,250

What is the total amount of accounts receivable at the end of the period?

• 700

• 250

• 1,000

• 450

What is the owner's equity if a company has total assets of $150,000 and total liabilities of $90,000?

• $150,000

• $240,000

• $90,000

• $60,000

Accounting is the process of:

I. Gathering and recording information

II. Providing information which influences decisions

III. Interpreting and reporting financial information

Which is correct?

• I and II only

• I and III only

• II and III only

• I, II, and III

What is the balance c/d at the end of the period?

• $30

• $90

• $110

• $170

How much will be needed to restore the imprest at the end of the period?

• $310

• $200

• $110

• $170

Nominal accounts include:

I. Purchases and Sales

II. Motor car and Furniture

III. Carriage Inwards and Carriage Outwards

• I

• I and II

• I and III

• II and III

• A business receives $5,000 for rent revenue and deposits this amount into its bank account. How will this transaction be recorded?

• Debit rent $5,000, Credit bank $5,000

• Debit cash $5,000, Credit rent revenue $5,000

• Debit Bank $5,000, Credit rent expense $5,000

• Debit bank $5,000, Credit rent revenue $5,000