Free Printable Non standardise POA Double entry and cash book test

1.

Started a business with $25000 cash

a)

Debit Cash /Credit Capital

b)

Credit Capital/Debit Cash

2.

Bought office furniture by cheque $1500

a)

Credit Bank / Debit Office Furniture

b)

Debit Office Furniture/Credit Bank

3.

Bought machinery $7500 on credit for Planer Ltd.

a)

Debit Planer Ltd./ Credit Machinery

b)

Debit Machinery/ Credit Planer

4.

Bought machinery $7500 on credit for Planer Ltd.

a)

Debit Planer Ltd./ Credit Machinery

b)

Debit Machinery/ Credit Planer

5.

Paid the amount owing to Planers Ltd $7500 by cheque

a)

Debit Bank/Credit Planers Ltd.

b)

Debit Planers Ltd/ Credit Bank

6.

In which book of account is cash discount received first recorded?

a)

Sales ledger

b)

Sales journal

c)

Purchases journal

d)

Cash book

7.

The business owner, Jack invested $9000 into the business bank account. What is the double entry to record this transaction?

a)

Debit Bank and Credit Capital

b)

Debit Capital and Credit Bank

c)

Debit Capital and Credit Jack

d)

Debit Jack and Credit Bank

8.

Sold equipment by cash $700. What is the double entry to record this transaction?

a)

Debit Cash and Credit Sales

b)

Debit Cash and Credit Equipment

c)

Debit Equipment and Credit Cash

d)

Debit Sales and Credit Equipment

9.

Bought a computer by cash $2500. What is the double entry to record this transaction?

a)

Debit Computer and Credit Cash

b)

Debit Cash and Credit Computer

c)

Debit Cash and Credit Purchases

d)

Debit Purchases and Credit Cash

10.

Sold goods on credit to Mark. What is the double entry to record this transaction?

a)

Debit Cash and Credit Sales

b)

Debit Mark and Credit Sales

c)

Debit Sales and Credit Mark

d)

Debit Cash and Credit Sales

11.

Bought computers worth $3000 on credit from Computers Ltd. What is the double entry to record this transaction?

a)

Debit Cash and Credit Computers

b)

Debit Computers and Credit Cash

c)

Debit Computers Ltd and Credit Computers

d)

Debit Computers and Credit Computers Ltd

12.

Sold old computers worth $1500 by cheque. What is the double entry to record this transaction?

a)

Debit Computers and Credit Cash

b)

Debit Computers and Credit Cheque

c)

Debit Bank and Credit Computers

d)

Debit Computers and Credit Bank

13.

Paid the wages for the month $400 by cheque. What is the double entry to record this transaction?

a)

Debit Cheque and Credit Wages

b)

Debit Wages and Credit Bank

c)

Debit Wages and Credit Cheque

d)

Debit Bank and Credit Wages

14.

Rent received by cheque $500. What is the double entry to record this transaction?

a)

Debit Rent and Credit Cheque

b)

Debit Bank and Credit Rent received

c)

Debit Cheque and Debit Rent

d)

Debit Rent received and Credit Bank

15.

The debit side is on which side of the account?

a)

Left

b)

Right

16.

A place where financial information is recorded is called a / an

a)

account

b)

transaction

c)

sales

d)

purchases

17.

The credit side of an account is on the

a)

left side

b)

right side

18.

Which account would always be a credited?

a)

Return outwards

b)

Carriage inwards

c)

Bank

d)

Cash

19.

We use the debit side of the account to show increases in?

a)

Assets

b)

liabilities

c)

gains

20.

An asset account is increased with a _________.

a)

debit

b)

credit

21.

The normal balance for Building is a __________.

a)

debit

b)

credit

22.

A financial statement that reports assets, liabilities, and owner's equity on a specific date.

a)

Income Statement

b)

Statement of Owner's Equity

c)

Balance Sheet

d)

Statement of Cashflows

23.

Every transaction must have at least ONE Debit and ONE Credit entry.

a)

TRUE

b)

FALSE

24.

The Right-hand side of a "T" account is called _______.

a)

debit

b)

credit

25.

The accounting equation is defined as _______.

a)

ASSETS + LIABILITIES = CAPITAL

b)

ASSETS - LIABILITIES = CAPITAL

c)

ASSETS = LIABILITIES + CAPITAL

d)

ASSETS = LIABILITIES - CAPITAL

26.

Bills that we owe are

a)

assets

b)

purchases

c)

liabilites

d)

wages

27.

Double entry in accounting means there must be________ entries for every transaction?

a)

two

b)

Three

c)

six

d)

one

28.

________ are debts of the business?

a)

assets

b)

liabilities

c)

owners equity

d)

vehicles

29.

Assets increase on the ________ side?

a)

subsidiary

b)

T-account

c)

credit

d)

debit

30.

Anything of value that is owned

a)

account

b)

asset

c)

withdrawal

d)

expense

31.

The amount in an account

a)

account title

b)

revenue

c)

account balance

d)

accounting records

32.

The account used to summarize the owner's equity in a business

a)

account

b)

expense

c)

capital

d)

revenue

33.

Anything of value that is owned by the company (such as cash, accounts receivables, vehicles, etc.) are reported on the balance sheet and are referred to as _______________.

a)

assets

b)

liabilities

c)

profit

d)

income

34.

Which of the following is an asset?

a)

Bank whom the firm took the loan from.

b)

Machinery bought from ABC Enterprise

c)

Owing to ABC Enterprise

d)

Owner's contribution of cash.

35.

Which of the following is the accounting equation?

a)

Assets + Capital = Liabilities

b)

Liabilities – Capital = Assets

c)

Capital = Assets + Liabilities

d)

Capital = Assets – Liabilities

36.

Payment with cash should be recorded as

a)

Debit cash account.

b)

Credit cash account.

c)

Debit bank account.

d)

Credit bank account.

37.

Withdraw cash for personal use is recorded as

a)

Debit Cash, Credit Capital

b)

Debit Drawings, Credit Cash

c)

Debit Capital, Credit Cash

d)

Debit Cash, Credit Drawings

38.

Accounts receivable is firm's

a)

customers or assets.

b)

suppliers or liabilities.

c)

customers or liabilities.

d)

suppliers or assets.

39.

We record an increase in Liabilites and Owner's Equity by

a)

A debit entry

b)

A credit entry

40.

Assets and Liabilities follow the same rules in double entry.

a)

True

b)

False

41.

Cash book records ………… receipts and payments.

a)

cash

b)

credit

c)

cash and credit both

d)

either cash or credit

e)

neither cash nor credit

42.

In double column cash book , how many columns of amount are there in cash book?

a)

one column each side

b)

one column

c)

two columns

d)

two columns each side

e)

any of them

43.

Cash book is a form of:

a)

(a) Trial Balance

b)

(b) Ledger

c)

(c) Journal

d)

(d) All of the above

44.

If the debit and credit aspects of a transaction are recorded in the cash Book it is a:

a)

(a) Contra entry

b)

(b) Simple entry

c)

(c) Double entry

d)

(d) Single entry

45.

Double entry in Cash Book is completed when:

a)

(a) Salaries are paid by cheque

b)

(b) Withdrawal of money from bank for personal use

c)

(c) Deposited cash into bank

d)

(d) None of these

46.

In three column Cash Book, when does contra entry occurs?

a)

(a) Withdrawal of cash from bank

b)

(b) Payment to creditors

c)

(c) Withdrawal of cash from bank for personal use

d)

(d) all of the above

47.

While balancing three column cash book, the discount column are:

a)

(a) Totaled but not adjusted

b)

(b) Totaled and also adjusted

c)

(c) Totaled but not balanced

d)

(d) Balanced but not totaled

48.

The Balance on the debit side of the bank column in Cash Book indicates

a)

(a) Total amount withdrawn from the Bank

b)

(b) Total amount deposited in the Bank

c)

(c) Cash at Bank

d)

(d) Bank Overdraft

49.

2. The balance of cash column of cash book never shows a:

a)

(a) Credit Balance

b)

(b) Debit Balance

c)

(c) None of the above

d)

(d) All of the above

50.

Which of the following is recorded on debit side of cash book?

a)

(a) Cash Sales

b)

(b) Drawings

c)

(c) Credit Sales

d)

(d) Cash Purchases

51.

Which of the following is recorded on the credit side of the Cash Book?

a)

(a) Cash Sales

b)

(b) Credit Purchases

c)

(C) Dividend Received

d)

(d) Salary paid

52.

Which of the following will not be recorded in Cash Book?

a)

(a) Cash Sales

b)

(b) Purchase of furniture

c)

(c) Purchases of raw materials on credit

d)

(d) Payment of wages

53.

Cash book records ………… receipts and payments.

a)

cash

b)

credit

c)

cash and credit both

d)

either cash or credit

e)

neither cash nor credit

54.

Generally cash book is made on which basis.

a)

weekly

b)

monthly

c)

yearly

d)

all of them

e)

any of them

55.

Cash paid into bank $60

a)

Debit

b)

Credit

c)

Both sides

56.

J. Scott paid us in cash $900

a)

Debit

b)

Credit

57.

O. Hardy pays us $6000 by cheque

a)

Debit

b)

Credit

58.

Withdrew cash from bank for business use $250

a)

Debit

b)

Credit

c)

Both sides

59.

Received $1690 by cheque from D. Fisher

a)

Credit

b)

Debit

60.

Paid rent by cash $88

a)

Debit

b)

Credit

Non standardise POA Double entry and cash book test

Total questions: 60

Worksheet time: 5hrs 0mins

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