Cambridge IGCSE Accounting Quiz

Which task would be carried out by a book-keeper but not an accountant?

• comparing one year’s results with those of previous years

• interpreting the accounting records

• preparing financial statements

• recording transactions in the ledgers and cash book

A business provided the following information on 1 February 2019.

The business made a profit of $10 000 for the year ended 31 January 2020. The owner did not make any drawings during the year. What was the capital on 31 January 2020?

• $35 000

• $50 000

• $70 000

• $100 000

Dilip is a manufacturer. He purchased a machine on credit from Sachin. How did Dilip record this?

• A

• B

• C

• D

Mui owns a household appliance store. He took home a washing machine for his personal use. Mui recorded this transaction as follows.

Did Mui make the correct entries to record this transaction?

• debit entry: no credit entry: no

• debit entry: no credit entry: yes

• debit entry: yes

  credit entry: no

• debit entry: yes credit entry: yes

The following account appeared in the books of Abdul.

Which statement is correct?

• On 1 January Abdul owed Hanif $400.

• On 4 January Hanif purchased goods, $250, from Abdul.

• On 31 January Abdul allowed Hanif $8 trade discount.

• On 31 January Hanif owed Abdul $150.

Which business document contains details of purchases, returns and payments occurring during a trading period?

• credit note

• debit note

• invoice

• statement of account

Rashida sells goods on credit and allows her customers a trade discount. Which statements are correct?

1 A debit entry is made in the customer’s account in the sales ledger for the net value of the goods sold.

2 The date of sale, name of the customer, cost price and trade discount are entered in the sales journal.

3 The trade discount is debited to the customer’s account and credited to the discount allowed account.

• 1 and 2

• 1 and 3

• 2 only

• 2 and 3

The totals of a trial balance agreed but it was found that the purchase of office equipment had been debited to office expenses account. Which type of error has been made?

• commission

• compensating

• original entry

• principle

On 31 January, Somraj’s bank statement showed a credit balance of $740. Comparing the bank statement with the cash book he found the following.

Somraj updated his cash book as required. What was the updated cash book balance on 31 January?

• $590

• $620

• $860

• $890

When Mark started a car repair business, he purchased premises and equipment. Two years later he spent $5000 on building an extension, $600 on new equipment and $750 on repainting the original premises. By how much will the non-current assets increase because of these transactions?

• $5000

• $5600

• $5750

• $6350