ACC100 Quiz 1

Christa pays her mortgage by instructing her bank to make monthly payments of a fixed amount from her current account.  When the mortgage rate changes she issues revised instructions to the bank.

Which method of payment is Christa using?

• Credit card

• Direct debit

• Cheque

• Standing order

Which of the following is an example of asset expenditure?

• Paying for refurbishments as part of upgrading a building

• Paying legal fees in order to recover customer debts

• Paying carriage outwards in respect of selling goods

• Paying bonuses to production staff

The following is a summary of the petty cash transactions for a week.

What sum should be reclaimed by the cashier at the end of the week?

• $160

• $340

• $500

• $400

The balance on the trade payables general ledger account should be equal to which other figure in the accounting system?

• The balance on the trade receivables general ledger account

• The total of the balances on the individual supplier accounts

• The total of the balances on the individual customer accounts

• The balance on the purchases general ledger account

Louise introduces her car into her business.

Which parts of the business' accounting equation will change?

• Liabilities and assets

• Assets and capital

• Capital and liabilities

• Capital and profit

Which manual journal entry correctly records the credit purchase of plant and equipment?

• Dr Plant and equipment Cr Cash

• Dr Plant and equipment Cr Trade payables

• Dr Cash Cr Plant and equipment

• Dr Trade payables Cr Plant and equipment

Which of the following are potential benefits of an effective document retention policy to a small business?

1. To ensure all documents are stored forever.

2. To meet legal and tax requirements of the business.

3. To mitigate risks arising from internal and external disputes of the business.

4. To increase operational efficiency and maintain control over costs.

• 1, 2, 3 and 4

• 1, 2 and 4 only

• 2, 3 and 4 only

• 1 and 3 only

Hywel purchases goods on credit with a list price of $100. The supplier gives Hywel a trade discount of 15% and also offers a settlement discount of 10% for payment within 30 days. What is the amount that Hywel will debit to his purchases general ledger account?

• $76.50

• $85.00

• $115.00

• $75.00

Raoul uses the following codes in his accounting system (see image).

Raoul received an invoice from A. Smythe, a supplier, for the rent of an office.

How should the invoice from A. Smythe be coded for input into Raoul's accounting system?

• Supplier code: 3452  General ledger code: 100500

• Supplier code: 3452  General ledger code: 200500

• Supplier code: 3451  General ledger code: 200500

• Supplier code: 3451  General ledger code: 100500

Narvinda buys goods from Jamal for $2,500 on 1 May. He returns half of the goods on 15 May. Which of the following documents would be issued by Jamal for the return of the goods?

• Remittance advice

• Credit note

• Invoice

• Debit note