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ACCOUNTING

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What are the cost of a manufacturing business?

a)

cost of sales

b)

manufacturing costs

c)

direct material cost

d)

direct labour cost

e)

factory overheads cost

2.

:APP: how to calculate gross profit on the income statement?

a)

20 sec

operating expenses -sales= Gross profit This is a wrong answer

b)

Sales- cost of sales= Gross profit This is a correct answer operating

c)

income - expenses = gross profit This is a wrong answer

d)

cost of sales -sales =Gross profit

3.

which notes appears in the income statement and not on the balance sheet?

a)

fixed assets or tangible assets as note no 3

b)

interest income and in interest expense as note no 1 and 2

c)

cash and cash equivalents as note no 9

assets or

d)

interest income and in interest expense as note no 1 and 6

4.

which category does depreciation fall under in the accounting equation?

a)

assets

b)

owners equity

c)

liability

d)

expense

e)

imputed expense

5.

do land and buildings depreciate as in note no 3?

a)

land and buildings accumulate

b)

depreciate

c)

expenses

d)

income

6.

interest on savings account is an /a

a)

expense

b)

income

c)

current assets

d)

current liability

7.

the difference between the physical stock take and the stock as per the trial balance.

a)

expense

b)

income

c)

trading stock deficit or trading stock surplus

d)

consumable stores on hand

8.

interest on a bank overdraft is an/a..

a)

current assets

b)

current liability

c)

asset

d)

capital

9.

to whom is the Audit report addressed to

a)

shareholders

b)

directors

c)

internal auditor

d)

external auditor

10.

profit on sale of an asset is an/a

a)

current asset

b)

income

c)

expense

d)

current liability

11.

what are source documents?

a)

these are the small track of transaction.

b)

these are used to keep the business running

c)

they are the small proof that the transaction did happen.

d)

small documents

12.

What is meant by Break-even point?

a)

Where the business made no loss nor profit.

b)

When sales are more than cost of sales.

c)

When profit is more than expenses

d)

When gross expenses exceeds income.

13.

what is the meaning of direct labour?

a)

the person directly involved in the production of good

b)

the supervisor of the factory

c)

the security guard

d)

the cleaner of the factory

14.

what is the difference between cash and credit transaction?

a)

credit no cash involved

b)

you pay in cash

c)

you buy witout using cash

d)

none of the above

15.

explain a measure to improve collection from debtors

a)

offer discounts for early payments

b)

charge interest

c)

set credit limit

d)

threatening