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LEVEL 1: ACCOUNTING - I PRELIMINARY EXAMS PAPER 2020-21

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

Transaction is best described as:

a)

Purchase & Sale

b)

Receipts & Payments

c)

Economic affairs of business

d)

Recording of data

2.

The following account has normally credit balance:

a)

Sales discount

b)

Purchases returns & allowance

c)

Sales Supplies

d)

Sales Equipment

3.

Invoice means:

a)

Detail of sale for a transaction

b)

Detail of sale in a day

c)

Cash receipt against sale

d)

Credit Sale

4.

The discount at the time of payment against purchase of merchandise on credit is called:

a)

Trade discount

b)

Cash discount

c)

Sales discount

d)

Payment discount

5.

Schedule of Accounts Receivable contains:

a)

Cash sales

b)

Cash sales

c)

Customers’ balances

d)

Suppliers’ balances

6.

The following account in a ledger is a result of misconception:

a)

Motor Vehicle

b)

Allowance for depreciation-Land

c)

Income Summary A/c

d)

Merchandise Inventory

7.

Posting from special journal to subsidiary ledger is necessary:

a)

for each record

b)

at month’s end

c)

at the end of calendar year

d)

at the end of financial year

8.

The adjustment affects expense and liability accounts is:

a)

Prepaid Expenses

b)

Accrued Expense

c)

Accrued Income

d)

Depreciation

9.

The accounts “Notes receivable” and “Notes Payable” represents:

a)

Customers & Suppliers

b)

Promissory Notes

c)

Credit Notes

d)

Currency Notes

10.

The most suitable book for recording payments of items like stationary, postage and food for lunch is:

a)

Cash book

b)

Petty cash book

c)

General Journal

d)

Subsidiary ledger