Session 09

In the Purchase Process, which document comes after the Purchase Request (PR)?

• Sales Order

• Delivery Note

• Purchase Order

• Invoice

Which of the following accounts is most likely a control account?

• Stationery Expenses

• Accounts Receivable

• Wages Payable

• Prepaid Rent

When a Sales Order is fulfilled and goods are delivered, what document is generated next?

• Quotation

• Invoice

• PR

• GRN

A Goods Received Voucher (GRV) typically results in:

• A decrease in liabilities

• An increase in inventory

• An increase in cash

• A decrease in equity

Why do businesses use control accounts?

• To avoid recording transactions

• To monitor only cash balances

• To summarize multiple detailed transactions

• To reduce inventory count

What is the primary purpose of a subsidiary ledger in relation to a control account?

• To calculate profit margins

• To store detailed information for individual accounts under a control account

• To replace journal entries

• To prepare the trial balance directly

What does the Income Statement primarily show?

• The company's total assets

• The company’s profit or loss over a period

• The bank balance

• The tax paid

If a business earns $200,000 and spends $120,000 in expenses, what is the Net Profit?

• $80,000

• $120,000

• $200,000

• $320,000

Which of the following is a non-operating item?

• Sales Revenue

• Rent Paid

• Equipment Repair

• Interest Income

What happens to Net Profit at the end of the period?

• It disappears

• It is added to Retained Earnings

• It’s subtracted from liabilities

• It’s used to buy fixed assets