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POA assessment 1 - term 2

Total questions: 35

Worksheet time: 17mins

Name
Class
Date
1.

An Asset is:

a)

Refers to items that are owned

b)

Refers to amounts that are owed to others

c)

Refers to amounts earned

2.

Expenses are those items that are:

a)

Direct costs for producing goods

b)

Costs associated with operating a business

c)

All the company outflows

3.

To journalize business transactions, refers .

a)

Recording them in the general journal

b)

Recording them in the general ledger

c)

Organizing the company paperwork

4.

Accounts Payable is classified as a/an ___________ in the _____________.

a)

Current asset; Balance Sheet

b)

Current liability; Balance Sheet

c)

Expense; Income Statement

d)

Revenue; Income Statement

5.

What is meant by accounts receivable?

a)

Money owed to a company by its debtors

b)

Money owed by a company to its creditors

c)

Money owed to a company by its employees

d)

Money owed by a company to its vendors

6.

Started a business with $25000 cash

a)

Debit Cash /Credit Capital

b)

Credit Capital/Debit Cash

7.

Bought office furniture by cheque $1500

a)

Credit Bank / Debit Office Furniture

b)

Debit Office Furniture/Credit Bank

8.

Bought motor van paying by cheque $6000

a)

Debit Motor Van/Credit Bank

b)

Debit Bank/ Credit Motor Van

9.

Bought machinery $7500 on credit for Planer Ltd.

a)

Debit Planer Ltd./ Credit Machinery

b)

Debit Machinery/ Credit Planer

10.

Paid the amount owing to Planers Ltd $7500 by cheque

a)

Debit Bank/Credit Planers Ltd.

b)

Debit Planers Ltd/ Credit Bank

11.

Received $600 cash from J. Walker

a)

Debit Cash / Credit J. Walker

b)

Debit J. Walker/Credit Cash

12.

Bought more machinery by cheque $2800

a)

Debit Bank/Credit Machinery

b)

Debit Machinery/Credit Bank

13.

Took $500 out of the bank and put it into the cash till.

a)

Debit Cash/Credit Bank

b)

Debit Bank/Credit Cash

14.

Sold office machinery for cash

a)

Debit Cash/Credit Office Machinery

b)

Debit Office Machinery/Credit Cash

15.

Put 14000 cash into the bank.

a)

Debit Cash/Credit Bank

b)

Debit Bank/Credit Cash

16.

Purchase goods on credit from Sofea.

a)

Sales Journal

b)

Purchase Journal

c)

Cash Book

d)

Purchase Return Journal

17.

Paid wages by cheque.

a)

Purchase Journal

b)

Sales Journal

c)

Cash Book

d)

Purchase Return Journal

18.

Issue an invoice to Isa for goods sold.

a)

Sales Journal

b)

Sales Return Journal

c)

Purchase Journal

d)

Purchase Return Journal

19.

Sold goods on credit to Sun Shine Trading

a)

Sales Journal

b)

Purchase Journal

c)

Sales Return Journal

d)

Cash Sales

20.

Which of the following is not a Book of Prime Entry?

a)

Sales Journal

b)

Cashbook

c)

Purchases Journal

d)

Sales Ledger

21.

Cashbook is used to record all cash and bank transactions

a)

True

b)

False

22.

A credit customer returned some damaged goods to the business.

a)

Sales Return Journal

b)

Purchase Return Journal

c)

Purchase Journal

d)

Sales Journal

23.

A receipt is used as a source document for

a)

Credit sales

b)

Credit purchases

c)

Payment of cash

d)

Return of goods to supplier

24.

Sales Return Journal is used to record

a)

Cash transactions

b)

Payment to creditors

c)

Return of goods by customer

d)

Return of goods to supplier

25.

A cheque counterfoil is the source document for

a)

Return inwards

b)

Return outwards

c)

Payment of cash

d)

Payment of cheque

26.

X sends back $800 of faulty goods to Y in

which book of prime entry would Y record this

transaction?

a)

General Journal

b)

Purchases Journal

c)

Sales Journal

d)

Sales Returns Journal

27.

The return of the damaged book by the customer

a)

Sales Return Journal

b)

Purchases Return Journal

c)

Cash Book

d)

General Journal

28.

Sell assets on credit

a)

Sales Journal

b)

Purchases Journal

c)

Cash Book

d)

General Journal

29.

Buy the goods on a credit basis

a)

Sales Journal

b)

Purchases Journal

c)

Cash Book

d)

General Journal

30.

General Journal is to record the following business transaction EXCEPT

a)

Opening Entry

b)

Purchase and Sales of fixed asset

c)

Drawing goods and fixed asset

d)

Additional Capital

e)

Purchase and Sales of goods

31.

The debit side is on which side of the account?

a)

Left

b)

Right

32.

The credit side is on which side of the account?

a)

Left

b)

Right

33.

Accounts Receivable increases in which side of a T-account?

a)

Debit

b)

Credit

34.

The owner invested additional equipment in the business, which of the following accounts should be debited?

a)

Equipment

b)

Cash

c)

Owner's, Capital

d)

Owner's, Equity

35.

The owner withdrew cash from the business, which of the following account title should be debited?

a)

Owner's, Drawing

b)

Cash

c)

Owner's, Capital

d)

None of the choices is correct.