untitled

The purchases Journal records:

• All purchases of non-current assets on credit

• All purchases of assets on credit

• All purchases for cash

• All purchases of stock on creit

The total of the sales journal represents:

• The total sales for the period

• The total cash sales for the period

• The total credit sales for the period

• The total of creditors for the period

Trade creditors represent a:

• Non-current asset

• Current liability

• Current asset

• Non-current liability

A source document used to make entries in the returns Journal is the:

• Invoice

• Receipt

• Credit note

• Inter-office memo

The General Journal is

• One of the ledgers in the accounting system

• Used to record all cash transactions

• One of the first books in which the transactions are recorded

• A financial statement prepared at the end of the period

The process of entering information in the journal is called:

• Posting

• Subsidising

• Accounting

• Journalising

All these documents are used to make entries in the Cash Book except:

• Cheques

• Receipts

• Cash bills

• Credit notes

The Bank account is said to be overdrawn:

• When the businesss owner withdraws funds from the Bank Account for personal use

• When the business receives a cheque for a debtor that is dishonoured

• When the bank allows the business to withdraw more money than it has deposited into the Bank Account

• When the bank collects payments on behalf of the business

When a contra entry occurs:

• Both entries are debited in the cash Book

• Both the debit entry and the corresponding credit entry for that transaction is made in the Cash Book

• More than one account is affected in the ledger

• Both entries are credited in the Cash Book

A credit balance in the Bank Account indicates:

• That a mistake has been made

• Some of the bank transactions were left out

• An overdraft

• The bank has deposited more money than the business has in its account