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CSEC POA PRACTICE

Total questions: 25

Worksheet time: 16mins

Name
Class
Date
1.

Which of the following can be found on both the income statement and on the balance sheet?

a)

Drawings

b)

Net profit

c)

Bank overdraft

d)

Account Receivable

2.

Which of the following is NOT a capital expenditure?

a)

Replacement costs

b)

Purchase costs

c)

Delivery costs

d)

Repair cost

3.

The accounting entry for writing off a bad debt is

a)

Dr Cash

Cr Bad debt

b)

Dr Provision for bad debt

Cr Bad debt

c)

Dr Bad debt

Cr Accounts payable

d)

Dr Bad debt

Cr Accounts receivable

4.

A business shows accounts receivable as $84 000 and the provision for doubtful debts as $5040. The business is therefore maintaining a provision for doubtful debts of

a)

3%

b)

5%

c)

6%

d)

8%

5.

A motor vehicle which costs $150 000 is to be depreciated by 10% per annum. It is expected to remain in the business for 4 years.

Using the Reducing Balance Method, what is the provision for depreciation after 3 years?

a)

$10,930

b)

$12,150

c)

$13,500

d)

$15,000

6.

Which of the following are items found in the cash book but not on the bank statement?

a)

Direct debit

b)

Standing order

c)

Credit transfer

d)

Unpresented cheques

7.

All the following are internal users of accounting except:

a)

potential investors

b)

board of directors

c)

employees

d)

owners

8.

Which of the following items will be recorded in the Returns Inwards Journal of L Cheng Ltd.?

a)

Sale made for cash

b)

Sales made on credit

c)

Customer returns faulty goods to L Cheng Ltd

d)

Faulty good return to a supplier by L Cheng Ltd.

9.

Which of the following groups of accounts are found in the Purchases Ledger control A/C?

a)

Total purchases, refunds, return inwards, discount allowed

b)

Cash purchases, cash received, return inwards, discount received

c)

Cheque purchases, cash received, return outwards, discount allowed

d)

Credit purchases, cash payments, return outwards, discount received

10.

When a transaction is credited in the bank column of the cash book what source of payment is used in this transaction?

a)

Cash

b)

Cheque

c)

Debit card

d)

Credit card

11.

The process of recording, summarizing, analyzing and interpreting of financial data to make informed decisions is known as

a)

accounting adjustments

b)

accounting cycle

c)

book-keeping

d)

accounting

12.

The source document entered in the Purchases Journal is a

a)

purchases invoice

b)

purchases receipt

c)

credit note

d)

debit note

13.

Which of the following is NOT ethical principle of accounting:

a)

due care

b)

integrity

c)

subjectivity

d)

professional behaviour

14.

Which of the following is LEAST likely to be a method of payment for employees:

a)

cash

b)

paypal

c)

cheque

d)

direct deposit

15.

Which of the following is NOT considered to be an outflow?

a)

Rent

b)

Sales

c)

Utilities

d)

Wages and salaries

16.

The total in the purchases book signifies total

a)

cash and credit purchses

b)

credit purchases

c)

cash purchases

d)

purchases

17.

Which of the following is NOT entered in the partnership appropriation account?

a)

Drawings

b)

Interest on capital

c)

Partnership salaries

d)

Interest on drawings

18.

Using the permanency method, the descending order in which current assets should be shown in a balance sheet is

a)

cash, bank, accounts receivable, inventory

b)

inventory, accounts receivable, bank, cash

c)

inventory, bank, cash, accounts receivable

d)

accounts receivable, inventory, bank, cash

19.

Land, machinery, fixtures and fitting and inventory, are all examples of

a)

liabilities account s

b)

personal accounts

c)

nominal accounts

d)

real accounts

20.

V Verano sold goods on credit to W Watson. In which ledger would the record of the transaction for W.Watson appear?

a)

Purchases ledger

b)

General ledger

c)

Sales ledger

d)

Cash ledger

21.

Which of the following ratios determines the profitability of the business?

a)

Capital ratio

b)

Current ratio

c)

inventory turnover

d)

Return on investment

22.

Which of the following is NOT an asset?

a)

Cash

b)

Premises

c)

Inventory

d)

Creditors

23.

Which of the following can have its shares traded on the stock exchange?

a)

A partnership

b)

A public company

c)

A private company

d)

A co-operative society

24.

Which of the following types of investment carries a fixed rate of interest whether profit is made or not?

a)

Debentures

b)

Preference shares

c)

Cumulative preference

d)

Participating preference

25.

Which of the following are ALL components of the Income Statement?

a)

Net sales, Cost of sales, Net profit

b)

Non-current liabilities, Capital, Expenses

c)

Net current assets, Gross profit, Cost of sales

d)

Gross profit, Current assets, Current liabilities