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WorksheetsForm 5 POA Term 1
Total questions: 98
Worksheet time: 2hrs 38mins
Which of the following transactions should be entered in the Petty Cash Book?
Salary payments
Stock issued
Subscriptions
Travelling expenses
A book of account used to record small payments is known as the ……
Cash book
Petty cash book
Sales daybook
Ledger book
The source document used to write up the petty cash book is a Petty cash
Receipt
Slip
Debit Note
Voucher
An amount of money given to the petty cashier at the beginning of the month in advance for the immediate basic needs of a business or organization is known as
Cash
Petty cash
Imprest
Refund
If the float given to the petty cashier is $200 and $190 was spent during the period, how much is the balance? _____
$10
$190
$390
$200
If the float given to the petty cashier is $200 and $190 was spent during the period, how much should be reimbursed at the end of the period? _______
$190
$10
$390
None of the above
Current Assets $ 400,000; Current Liabilities $200,000 and Inventory is $50,000. Acid Test Ratio will be:
(a) 2:1
(b) 2.25:1
(c) 4:7
(d) 1.75:1
A $100 debit balance brought down in the cash column of a firm's Cash Book means that . . .
the firm has $100 cash in hand.
the amount of cash paid out exceeds the amount of cash received by $100.
the total of cash paid out is $100.
the total of cash received is $100.
Discounts received and discounts allowed columns appear ONLY in the three column cash book set-up.
TRUE
FALSE
Paid M. Prince cash $19, How should this be recorded in the cash book?
Cr the cash column in the cash book $19
Dr the cash column in the cash book $19
Cr the bank column in the cash book $19
Dr the bank column in the cash book $19
Contra entry in Cash Book is completed when:
(a) Salaries are paid by cheque
(b) Withdrawal of money from bank for personal use
(c) Deposited cash into bank
(d) None of these
The balance b/d on the credit side of the bank column in cash book indicates
total amount withdrawn from the bank
total amount deposited in the bank
cash at bank
bank overdraft
Which of the following pairs are ASSETS ?
cash and creditors
land and debtors
debtors and creditors
Which of the following are Liabilities ?
(select all that apply)
debtors
creditors
bank overdraft
loan
Debtors Accounts are found in which Ledger?
Sales Ledger
Purchases Ledger
Which statement is TRUE ?
Journals are used to record cash transactions
The Cash Book is used to record cash transactions
If Assets=$2000 , Liabilities=$1500 , what is the value of Capital ?
$500
$1500
$2000
$3500
Which of the following are EXPENSES ?
(select all that apply)
carriage inwards
carriage outwards
sales
purchases
Sales Returns is the same as
Returns Inwards
Returns Outwards
Which of the following items appears under the DEBIT column of the Trial Balance ?
(select all that apply)
Purchases
Drawings
Capital
Wages
The sale of a fixed asset would be recorded in the
Sales journal
General journal
A business bought a computer paying $5000 by cheque.
What are the double entries to record this ?
Dr. Purchases $5000, Cr. Bank $5000
Dr. Computer $5000, Cr. Bank $5000
Dr. Bank $5000, Cr. Purchases $5000
What is a balance sheet?
A final account
A snapshot of the business' financial position of at a particular point in time.
It shows the business' assets, liabilities and capital
Identify the categories of accounts found on the balance sheet.
Assets, liabilities, capital
Expenses, liabilities, income
Financed by, expenses, revenue
All are examples of current assets except
bank
debtors
loans
inventory
The term current assets refer to assets that are likely to change
6 months
2 years
3 months
1 year
What is the correct order for current assets in the balance sheet?
cash, bank, debtors, stock
stock, debtors, bank, cash
stock, bank, cash, debtors
debtors, stock, bank, cash
Which one is not belongs to liability?
Mobile Phone Bill
Bank Loan
Bank Balance
Owed To Friends
Mr.W has current assets of $500 and total assets of $1500. ABC has current liabilities of $300 and total liabilities of $800. What is the amount of ABC's owner's equity
200
700
900
800
Accounting is
recording anything that happens in the business
recording the business transactions
recording, analyzing and interpreting the business transactions
recording, summarizing, analyzing and interpreting the business transactions
All businesses are started with the aim of making ...
Capital
sound investments on the stock market
A profit
their owners popular
Which list represents both internal and external users of accounting information?
Banks, government and investors
Creditors, government and managers
Creditors, banks and investors
Suppliers, investors and banks
Which accounting user is correctly matched with its needs?
Banker - to determine taxes to charge the business
Government - to find out if the business can repay a loan
Supplier - to find out if he should invest capital in the business
Owner - to determine the profit of the business over the financial period
Which of the following stages of the accounting cycle is correct?
Journalising, posting to the ledger, trial balance, financial statement
Posting to the ledger, journalising, trial balance, financial statement
Posting to the ledger, trial balance, financial statement, journalising
Trial balance, financial statement, posting to the ledger, journalising
Which of these are books of original entry?
sales day book
purchases day book
petty cash book
all of the above
When goods are returned by the purchaser to the supplier, the supplier will issue a/an
invoice
credit note
receipt
cheque
Gross profit is calculated in the:
profit and loss account
balance sheet
trading account
trial balance
Net profit is:
sales less cost of goods sold
gross profit add expenses of the period
capital plus all expenses
gross profit less expenses of the period
Carriage inwards is charged to the trading account because:
it is not a balance sheet item
it is not part of our motor expenses
returns inwards also goes in the trading account
it is part of the cost of buying goods
Given figures showing: sales of $28,500, opening stock of $4,690, closing stock of $7, 240, carriage inwards of $570 and purchases of $21, 350, the cost of goods sold figure is:
$19,830
$19,380
$18,810
none of the above
In the trading account, the returns inwards should be:
added to cost of goods sold
deducted from purchases
deducted from sales
added to sales
Cost of goods sold is calculated by...
Opening stock + purchases - closing stock
Opening stock + purchases + closing stock
Adding up all of the stock bought during the year
Opening stock - closing stock
What is the purpose of an income statement?
calculate the bank balance
calculate net assets
calculate sales
calculate net profit
Which account should not be found in an income statement?
Sales
Purchases
Debtors
Carriage inwards
Two common financial statements prepared are the
Trading and Profit and Loss Account and Balance Sheet
Balance Sheet and Suspense Account
Cash Book and Trading and Profit andLoss Account
Control Account and Balance Sheet
Sole Traders
do not ever employ others
are liable for all business losses/debts and benefit from all profits
are selfish and unable to get along with others
are primarily involved in street vending
True or False. The Balance Sheet is also known as the Statement of Financial Position.
True
False
The most liquid asset is.....
Cash
Property
Motor Vehicle
Fittings
Purchase goods on credit from Sofea.
Sales Journal
Purchase Journal
Cash Book
Purchase Return Journal
The diagram above represents which cycle?
Maths Cycle
Book-keeping Cycle
The Accounting Cycle
What goes up but never comes down?
Aeroplane
Water
Rain
Your age
Which of the following concepts, it is assumed that business will exist for an indefinite time period: (2015)
Realization concept
Going concern concept
Business entity concept
None of these
Modern accounting is based on: (2019)
Cost concept
Matching concept
Going concern concept
Dual aspect concept
Which of the following statements is incorrect?
Liabilities + Assets = Capital
Assets – Liabilities = Capital
Liabilities + Capital = Assets
Assets - Capital = Liabilities
An increase in the provision for doubtful debts would result in _______________.
an increase in revenue
an increase in expenses
a decrease in expenses
a increase in expenses
A decrease in the provision for doubtful debts would result in ______________.
a decrease in net profit
an increase in net profit
a reduction in gross profit
an increase in gross profit
Bad debts can be classified as a/an _______________.
current asset
expense
non-current asset
equity
State the double entries to record an increase in provision for bad debts.
Debit. Statement of Profit or Loss
Credit. Provision for doubtful debts
Debit. Bad debt
Credit: Provision for bad debt
Debit. Provision for bad debt
Credit. Statement of Profit or Loss
Debit Provision for bad debt
Credit. Bad debt
What is debt?
Money that is spent
Money that is owed because of borrowing
Money that you lend to others
Money earned from business activities
Credit means you ________now and ________ it back later.
Borrow, Pay
Pay, Borrow
Pay, Pay
Borrow, Borrow
Thomas is unable to pay the debt he owes to Ramesh.
Advise Ramesh on the accounting record for this situation.
Debit - Bad debts
Credit - Statement of Profit or Loss
Debit - Bad debts
Credit - Thomas Account
Debit - Statement of Profit or Loss
Credit - Thomas Account
Debit - Thomas Account
Credit - Statement of Profit or Loss
The amount that will be received for an asset at the time of its disposal.
straight-line-depreciation
units-of-production method
assessed value
scrap value
Estimated sales value of an asset after its working is called (a) .
Depreciation arises because of -
Obsolescence
Constant use of assets
expiry of time
All of these
Depreciation for business is -
Loss
Gain
Income
Liability
Depreciation is provided on -
Current assets
Fictitious assets
Fixed assets
Intangible assets
Depreciation under fixed instalment method is calculated-
On the purchase price of asset
On the closing balance of asset
On each year’s opening balance of the asset
on the market price of asset
Depreciation arises due to -
Fluctuations
Fall in the value of money
Temporary fall in the market value of asset
Physical Wear and tear
Cash sales to Aminah
Cash Book
Sales Journal
Purchase Journal
Sales Return Journal
Purchase goods on credit from Sofea.
Sales Journal
Purchase Journal
Cash Book
Purchase Return Journal
The purchases ledger records
the accounts of suppliers on credit.
the accounts of customers on credit
all the accounts of suppliers
all the accounts of customers
Accounts receivables are found
in the general ledger
in the cash book.
in the sales ledger
in the general journal
The purchases journal records
all the accounts of suppliers on credit
all purchases of assets on credit
all purchases on credit
all purchases for resale on credit
The purchases journal entries are posted to
the purchases account and the customers' accounts.
the general ledger and the cash book
the purchases account and suppliers' accounts in the purchases ledger
the general ledger and the sales ledger
The sales journal contains
the accounts of customers on credit
a detailed list of all sales of stock on credit
trade creditors
everything that is sold on credit for the period
The total of the sales journal represents
the total sales for the period
trade creditors for the period
a current liability of the period
trade receivables for the period
Which of the following is an alternative name for the purchases journal?
purchases day book
accounts payable
daily purchases
books of purchases
What type of accounts are Prepaid Insurance, Prepaid Advertising, and Prepaid Expenses?
Asset
Liability
Owner's Equity
Expense
What is difference between accrued expenses and prepaid expenses? (tick 2 boxes)
accrued expenses = not yet paid for the current year
prepaid expenses = paid in advance for the next accounting period
accrued expenses = paid for the current year
prepaid expenses = not paid for next accounting year
accrued expenses = posted as current asset
prepaid expenses = posted as current liability
accrued expenses = posted as current liability
prepaid expenses = posted as current asset
Additional information at year end:
accrued insurance $300 prepaid rent $700
Identify the correct entries in Income statement .
add $300 accrued insurance minus $700 prepaid rent
add $300 accrued insurance add $700 prepaid rent
minus $300 accrued insurance minus $700 prepaid rent
minus $300 accrued insurance add $700 prepaid rent
Additional information at year end:
interest income receivable $500
Rent income received in advance $200
add Rent income received in advance $200
less interest income receivable $500
add Rent income received in advance $200
add interest income receivable $500
less Rent income received in advance $200
add interest income receivable $500
less Rent income received in advance $200
less interest income receivable $500
Jan 1 Prepaid rent $400
Calculate the amount to be closed to Profit and loss.
Profit and loss = - 400 + 600 + 200 = $400
Profit and loss = 400 + 600 + 200 = $1200
Profit and loss = 400 - 600 + 200 = 0
Profit and loss = - 400 - 600 + 200 = - $800
Jan 1 Prepaid rent $400
Calculate the amount to be closed to Profit and loss.
Profit and loss = - 400 + 600 + 200 = $400
Profit and loss = 400 + 600 + 200 = $1200
Profit and loss = 400 - 600 + 200 = 0
Profit and loss = - 400 - 600 + 200 = - $800
