Grade 10 BS Quiz

A payment of $500 for office supplies was mistakenly debited to the equipment account. Which type of error is this?

• Error of omission

• Error of commission

• Error of principle

• Compensating error

Which of the following is an example of a liability?

• Bank overdraft

• Accrued wages

• Trade payables

• All of the above

What does the term "trade receivables" refer to?

• The total purchases of a business

• Customers who owe the business money

• Goods returned by customers

• Payments made to suppliers

If a business purchases goods on credit, which accounts are affected?

• Purchases and Cash

• Purchases and Trade Receivables

• Purchases and Trade Payables

• Purchases and Bank

What is the primary purpose of accounting?

• To record all business transactions

• To calculate tax payable

• To provide financial information for decision-making

• To prepare a budget

What is the main purpose of depreciation?

• To reduce the value of an asset in the financial statements

• To save money for replacing the asset in the future

• To allocate the cost of a non-current asset over its useful life

• To determine the resale value of the asset

Which of the following is an example of revenue expenditure?

• Purchase of a delivery van

• Payment for repairs to machinery

• Construction of a new office building

• Purchase of land

What is the purpose of a provision for doubtful debts?

• To increase trade receivables

• To estimate potential bad debts and reduce profits

• To write off bad debts

• To provide cash for debt recovery

Which accounting concept states that expenses and income must be matched to the same accounting period?

• Consistency concept

• Matching concept

• Prudence concept

• Accrual concept

Which of the following transactions will NOT affect the capital account?

• Owner invests additional cash into the business

• The business earns a profit

• The owner withdraws cash for personal use

• The business repays a loan