Accounting

what is the purpose of accounting?

• to ensure the cash book balance agrees with the bank statement

• to know how long trade receivables take to pay

• to prepare the financial statements of the business

• to write up all the ledger accounts

where is discount receive shown?

• credit side of the purchases ledger control account

• debit side of the purchases ledger controls accounts

• credit side of the sales ledger control accounts

• debit side of the sales ledger control account

Pedro spent $8410 buying a new vehicle. the invoice showed:

• 8050

• 8180

• 8230

• 8360

Abdul started a business but transferring huis own vehicle to the business at a valuation of $9000 and introducing a sum of cash. In the first year of trading profit was $2000. At the end of the first year the balance on his capital account was $51000. How much cash did Abdul introduce?

• $40000

• $44000

• $58000

• $62000

A manufacturing business provided the following information.

What was the cost of sales for the year?

• $75000

• $10500

• $170000

• $175000

Agnes and Bran operate in similar businesses. They provide the following information.

• Agnes receives money from customers sooner than Brian

• Agnes pays her suppliers sooner than Brian

• Brian receives money from customers sooner than Agnes

• Brian pays his suppliers sooner than Agnes

When is accounting information relevant?

• when it can be compared with information for other people

• when it can be understood by the users of the accounts

• when it changes business decisions

• when it is free from error and bias

what is the purpose of book-keeping?

• to interpret the double entry records

• to prepare financial statements at regular intervals

• to record all the financial transactions of the business

• to summarize the financial position of the business

what are assets?

• items that are bought for long-term use by a business

• items that are expected to be turned into cash in the near future

• items that are owned by or owed by a business

• items that are owned by or owed to a business

sami returns goods bought on credit from jared. how does jared record this in his books?

• A

• B

• C

• D