Free Printable End of Term Assessment Term 3 F4

1.

A person who is associated with starting a business is know as

a)

Merchant

b)

Entrepreneur

c)

Salesman

d)

Businessman

2.

Concept: a business's records should never be mixed with an owner's personal records and reports

a)

adequate disclosure

b)

business entity

c)

objective evidence

d)

going concern

3.

Concept: When a business activity is large enough to impact business decisions, it should be recorded clearly in the financial statements

a)

realization of revenue

b)

materiality

c)

unit of measurement

d)

consistent reporting

4.

Concept: Financial statements are prepared with the expectation that business will remain in operation indefinately

a)

going concern

b)

materiality

c)

accounting period cycle

d)

matching revenue with expenses

5.

Concept: The same accounting procedures must be followed in the same way each accounting period

a)

accounting period cycle

b)

objective evidence

c)

consistent reporting

d)

materiality

6.

Concept: The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period

a)

adequate disclosure

b)

unit of measurement

c)

historical cost

d)

matching expenses with revenue

7.

Concept: Business transactions are reported in numbers that have common values. Meaning all reporting should be done in terms of money

a)

Unit of measurement

b)

historical cost

c)

materiality

d)

matching expenses with revenue

8.

When preparing Financial Statements which monetary measurement basis states that the accounting records should be based on the original cost of the transaction.

a)

Current Value

b)

Replacement Value

c)

Realisation Value

d)

Historical Cost

9.

Furniture is regarded as

a)

Assett

b)

Fixed Assett

c)

Liability

d)

Current Liability

10.

Owners equity just refer to the Capital of the owner

a)

True

b)

False

11.

The Accounting Equation must always be in balance?

a)

True

b)

False

12.

Purchases from a supplier on credit is a liability.

a)

True

b)

False

13.

For accounting purpose, the proprietor is a separate and distinct entity from the business.

a)

True

b)

False

14.

Which one from the list below doesn't represent the Accounting equation?

a)

A = C + L

b)

A - L = C

c)

A - C = L

d)

C = A + L

15.

How will you calculate profit?

a)

Income - Expenses

b)

Income + Expenses

c)

Income x Expenses

d)

Capital - Expenses

16.

Assets can be seen as

a)

Possessions that are used to run a business.

b)

Expenses for the business

c)

Items the business received from the owner

17.

The full formula to calculate owners equity is, Capital + Income - Expenses - Drawings

a)

True

b)

Fales

18.

What will happen to liabilities when a business takes out a loan?

a)

Loans will increase

b)

No effect

c)

Loans will decrease

19.

Purchase goods on credit from Sofea will be recorded in:

a)

Sales Journal

b)

Purchase Journal

c)

Cash Book

d)

Purchase Return Journal

20.

Cash sales to Aminah will be recorded in:

a)

Cash Book

b)

Sales Journal

c)

Purchase Journal

d)

Sales Return Journal

21.

Paid wages by cheque will be recorded in:

a)

Purchase Journal

b)

Sales Journal

c)

Cash Book

d)

Purchase Return Journal

22.

Sold goods on credit to Sun Shine Trading

a)

Sales Journal

b)

Purchase Journal

c)

Sales Return Journal

d)

Cash Sales

23.

Cashbook is used to record all cash and bank transactions

a)

True

b)

False

24.

A credit customer returned some damaged goods to the business.

a)

Sales Return Journal

b)

Purchase Return Journal

c)

Purchase Journal

d)

Sales Journal

25.

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

26.

A cheque counterfoil is the source document for

a)

Return inwards

b)

Return outwards

c)

Payment of cash

d)

Payment of cheque

27.

An article is subject to a 20% trade discount. Its list

price is $600. What is the sale price?

a)

$120

b)

$480

c)

$580

d)

$720

28.

A retailer purchases goods worth $3 000. He receives

30 per cent trade discount and 5 per cent cash

discount. How much should he pay for the goods?

a)

$1 995

b)

$2 095

c)

$2 100

d)

$2 850

29.

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

30.

The Balance of Petty Cash is :

a)

(a) An Expense

b)

(b) Revenue

c)

(c) An asset

d)

(d) Liability

31.

Cash book is a form of:

a)

(a) Trial Balance

b)

(b) Ledger

c)

(c) Journal

d)

(d) All of the above

32.

Small payments are recorded in a book called

a)

(a) Cash Book

b)

(b) Small payments book

c)

(c) Purchase book

d)

(d) Petty cash book

33.

Cheques received but deposited on the next day are recorded in:

a)

(a) Cash column of the cash book

b)

(b) Bank column of the cash book

c)

(c) Both of these

d)

(d) None of these

34.

In petty cash Book, the system followed:

a)

(a) Accrual System

b)

(b) Imprest System

c)

(c) Cash System

d)

(d) None of these

35.

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

36.

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

37.

What will be journal entry when cash is withdrawn from bank for personal use?

a)

(a) Drawing A/c debit, Bank A/c credit

b)

(b) Cash A/c debit, Bank A/c credit

c)

(c) Bank A/c debit, Drawing A/c credit

d)

(d) Bank A/c debit, Capital A/c credit

38.

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

39.

The Balance brought down 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

40.

If Rita sells goods for cash, it will be recorded in

a)

Sales book

b)

Purchases book

c)

Cash book

d)

Journal proper

41.

Total of purchases book is

a)

Posted to the credit of Purchases account

b)

Posted to the debit of Purchases account

c)

Posted to two column cash book

d)

None of the above

42.

Credit balance in bank column of the cash book indicates

a)

Total Cheques

b)

Total Cash

c)

Bank Overdraft

d)

Normal balance

43.

Cash , being an asset is always said to have

a)

Debit balance

b)

Credit balance

c)

No balance

44.

Ledger is called book of

a)

Primary entry

b)

Secondary entry

c)

Final entry

d)

All of the above

45.

Trial balance shows

a)

Only debit balance

b)

Only credit balance

c)

Both credit and debit balance

d)

None of the above

46.

Which one is not belongs to liability?

a)

Mobile Phone Bill

b)

Bank Loan

c)

Bank Balance

d)

Owed To Friends

47.

The value of all assets minus the value of all liabilities.

a)

Financial obligations

b)

Assets

c)

Net Worth

d)

Property

48.

Debts and financial obligations (responsibilities).

a)

Liabilities

b)

Assets

c)

Negative Net Worth

d)

Property

49.

Examples of Liabilities include which of the following:

a)

Loans, credit cards, and real property

b)

Loans, mortgage, and credit cards

c)

Loans, Art collection, and savings account

d)

Mortgage, credit card, and real property

50.

The table below shows Claude's assets and liabilities. What is the total value of his assets?

a)

$24,950

b)

$25,420

c)

-$24,950

d)

$50,370

51.

The table below shows Claude's assets and liabilities. What is the total value of his liabilities?

a)

$24,950

b)

-$24,520

c)

$25,420

d)

$50,370

52.

Current Assets are cash or other assets that are expected to be converted to cash within a year

a)

True

b)

False

53.

Which of the following is a Non current asset?

a)

Furniture

b)

Other Receivables

c)

Trade payables

d)

All the above are or can be non-current assets

54.

Gross profit is calculated by...

a)

Revenue - Total Costs

b)

Revenue + Variable Costs

c)

Revenue - Cost of Sales

d)

Revenue - Fixed Costs

55.

Cost of sales is calculated by...

a)

Opening stock + purchases - closing stock

b)

Opening stock + purchases + closing stock

c)

Adding up all of the stock bought during the year

d)

Opening stock - closing stock

56.

How do you calculate net profit?

a)

Gross profit - expenses

b)

Revenue - total costs

c)

Gross profit - variable costs

d)

Revenue - indirect costs

57.

COGS stands for

a)

cost of goods sales

b)

cost of goods serviced

c)

cost of goods sold

58.

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Gross Profit = ?

a)

800

b)

500

c)

700

d)

300

59.

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Net Profit = ?

a)

800

b)

500

c)

700

d)

300

60.

Net Profit = 500

Revenue = 2000

Expenses = 1000

Cost of Goods Sold = ?

a)

1500

b)

1000

c)

3000

d)

500

End of Term Assessment Term 3 F4

Total questions: 60

Worksheet time: 10hrs 0mins

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