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Assessment - final

Total questions: 30

Worksheet time: 8hrs 30mins

Name
Class
Date
1.

$200 rental payment was not recorded in the books. What is type of this error ?

a)

Error of omission

b)

Error of commission

c)

Error of original entry

d)

Compensating error

2.

A credit purchase of goods $1200 from Calvin trading was recorded in Clara trading account. Name the error.

a)

Error of commission

b)

Error of omission

c)

Error of principle

d)

Compensating error

3.

A cheque payment of $500 for rent was not recorded. Name the error.

a)

Error of commission

b)

Error of omission

c)

Error of principle

d)

Compensating error

4.

Both salaries expense and commission income were overstated by $900. State the correction of error.

a)

Dr Capital Cr salaries exp

b)

Dr salaries expense cr commission income

c)

Dr commission income Cr salaries expense

5.
What is the impact on profit for the year if income overstated?
a)
profit will be overstated
b)
profit will be understated
c)
no effect
6.

Cheque of $300 was issued to settle Mr Chan's account was recorded in Mr Chen's account.

a)

Error of omission

b)

Error of commission

c)

Error of original entry

d)

Compensating error

7.

Purchase of a motor van costing $1000 was recorded in motor expenses account.

a)

Error of omission

b)

Error of commission

c)

Error of original entry

d)

Error of principle

8.

When there is error with credit entry not equal to credit entry,

a)

trial balance will not agree

b)

trial balance will agree

c)

supense account will be appeared

d)

there is no suspense account

9.

A suspense account is used to rectify?

a)

Errors affecting trial balance agreement

b)

Errors not affecting trial balance agreement

c)

Both types of errors

d)

None of these

10.
Furniture of Rs8000 was purchased from Rahul on credit. Rahul's account was correctly credited but furniture account was debited with Rs80,000. What will be the rectifying entry ? 
a)
Suspense a/c dr 8000
To  Furniture a/c 
b)
Furniture a/c Dr 72000
To Rahul 72000
c)
Rahul dr 72000
To  suspense a/c 72000
d)
None of these 
11.

Which one is right?

a)

Asset = Owner's equity + Liability

b)

Asset = Owner's equity - Liability

c)

Asset + Owner's equity = Liability

d)

Asset + Owner's equity = expense

12.

Property owned by an individual

a)

Liability

b)

Asset

c)

Property

d)

Net Worth

13.
Which of the following is considered an asset?
a)
Bank Loan
b)
Mortgage
c)
Debit Card
d)
Savings account
14.
Which of these does a balance sheet show
a)
How much gross profit a business made
b)
Its total revenue
c)
What a business owns and owes
d)
How much it paid in rent
15.
What period of time does a balance sheet cover?
a)
One quarter
b)
One moment in time
c)
One year
d)
One tax year
16.
Current liabilities are Long term
a)
True
b)
False
17.

A cash deposit made by business appears on the bank statement as _______ balance.

a)

Debit

b)

Credit

c)

Expenses

d)

Liabilities

18.

Whenever money is deposited by the business, a credit entry in its records corresponds to a debit entry in the bank's records.

a)

True

b)

False

19.

If the final balance of the bank statement is credit, it indicates that the business owes the bank money.

a)

True

b)

False

20.

If the bank charges the business fees, the bank makes a credit entry in the bank statement.

a)

True

b)

False

21.

The total of the Cash at Bank column is:

a)

$8750

b)

$8100

c)

$16100

d)

$4000

e)

None of the above

22.

If the final balance in the bank statement is $3500 Dr, unpresented cheques equal $200 and outstanding deposits total $400, the final balance in the business's bank account is:

a)

$3700 Dr

b)

$3700 Cr

c)

$3300 Cr

d)

$3300 Dr

23.

If the final balance in the bank statement is $3900 Cr, unpresented cheques equal $500 and outstanding deposits total $900, the final balance in the business's bank account is:

a)

$4300 Dr

b)

$4300 Cr

c)

$3500 Cr

d)

$3500 Dr

24.

If the final balance in the bank statement is $3900 Cr, unpresented cheques equal $500 and outstanding deposits total $900, the final balance in the business's bank account is:

a)

$4300 Dr

b)

$4300 Cr

c)

$3500 Cr

d)

$3500 Dr

25.

Which item goes in the petty cash book?

a)

Small items of expenditure

b)

Selling small assets such as books

c)

Small sales

d)

Expenditure such as rent

26.

All of the following is a source document EXCEPT

a)

Debit note

b)

Petty cash book

c)

Cheque counterfoil

d)

Bank paying-in slips

27.

Sabrina is buying goods on credit. Which document would be given to her by the supplier?

a)

Debit note

b)

Receipt

c)

Invoice

d)

Correspondence

28.

Another word for ‘accounts payable’ is;

a)

Creditors

b)

Debtors

c)

Receivers

d)

Petty cash

29.

Accounting is

a)

recording anything that happens in the business

b)

recording the business transactions

c)

recording, analyzing and interpreting the business transactions

d)

recording, summarizing, analyzing and interpreting the business transactions

30.

All businesses are started with the aim of making ...

a)

Capital

b)

sound investments on the stock market

c)

A profit

d)

their owners popular