WorksheetsRevision Quiz 1
Total questions: 10
Worksheet time: 15mins
The reason for an increase in inventory can be:
The purchase of additional goods.
A purchases account, in which purchases of goods are entered.
The return inwards account, in which goods being returned into the business are entered.
The reason for a decrease in inventory can be:
The purchase of additional goods.
The return to the business of goods previously sold.
Goods previously bought by the business are now being returned to the supplier.
When the "Returns outwards" account increases, it is:
Debited
Credited
What are the wrong classifications in the following?
Loan from C Smith, Creditors, Debtors
Creditors, Debtors, Stocks of goods
Stock of goods, Debtors, Creditors
Recording the transaction: D Gough started a business with £9,000 in the bank
Debit Bank 9,000; Credit Capital 9,000
Debit Capital 9,000; Credit Bank 9,000
Debit Cash 9,000; Credit Bank 9,000
Recording the transaction: D Gough received a loan of £2,000 from B Blane by cheque.
Debit Cash in-hand 2,000; Credit B Blane 2,000
Debit Loan 2,000; Credit B Blane 2,000
Debit Bank 2,000; Credit B Blane 2,000
Recording the transaction: D Gough bought display equipment on credit from Clearcount Ltd £420
Debit Equipment 420; Credit Clearcount 420
Debit Clearcount 420; Credit Equipment 420
Debit Equipment 420; Credit Cash 420
What is the term "Time interval" in accounting?
Financial statements are prepared monthly
Financial statements are prepared annually
Financial statements are prepared at regular intervals of one year
What are the qualitative characteristics of financial statements?
Objectivity, Integrity, Confidentiality, Professional behavior
Understandability, Relevance, Reliability, Comparability
Money measurement, Historical cost, Business Entity, Dual aspect
Which accounts will be credited when increase?
Sales, Account Receivable, Cash
Sales, Inventory, Account Payable
Sales, Account Payable, Return outward
