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Accounting

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

For most transactions, where is the first entry made in the accounting records?

a)

In the trial balance

b)

In the ledger

c)

In a book of prime entry

2.

Which of the following is correct?

a)

Capital = Assets + Liabilities

b)

Capital = Assets - Liabilities

c)

Capital = Liabilities - Assets

3.

Which of the following will give cleared funds in the recipient's bank account on the same day as they are sent?

a)

BACS payment

b)

CHAPS payment

c)

Cheque payment

4.

Which one of the following is not correct?

a)

An asset account will have a debit balance

b)

A liability account will have a debit balance

c)

An income will have a credit balance

5.

The trial balance is:

a)

A listing of all the balances of the accounts in the main ledger

b)

A listing of some of the balances of the accounts in the main ledger.

c)

A first attempt at balancing an account

6.

When an invoice is posted to a customer's sales ledger account, which of the following would you not expect to see entered in the sales ledger?

a)

Invoice date

b)

Invoice number

c)

Gross amount

d)

Net amount

7.

The Sales returns day book lists:

a)

Items received back from customers by the stores department

b)

Credit notes issued to customers

c)

Reports of the profit made on sales for the month

8.

Is the following statement True or False?

Suppliers' statements received can be ignored as the information should already be included in the purchases ledger.

a)

True

b)

False

9.

How will a refund due to the buyer be acknowledged and documented?

a)

By means of an invoice

b)

By means of a credit note

10.

How long are documents usually retained for?

a)

At least 2 years

b)

At least 6 years

c)

At least 5 years

d)

At least 3 years

11.

The accounts of trade receivables are contained in:

a)

Purchases ledger

b)

Sales ledger

c)

General ledger

12.

Carrymatzon Ltd sells goods which have a total list price of £1,200. The following discounts are available to the buyer:

• 20% normal trade discount

• trade discount of 25% for purchases over £2,000

The net amount to be charged before VAT will be:

a)

£900

b)

£960

c)

£930

13.

If a business receives a remittance advice from a customer and there is an underpayment of the account, the reason could be one of the following situations. Choose the correct option.

a)

The customer has paid a sales invoice twice in error

b)

The customer has failed to take a sales credit note into account

c)

There is a dispute over an invoice

d)

The payment has been late

14.

A purchase order should be checked by the buyer against:

a)

The supplier’s account

b)

The delivery note

c)

The remittance advice

15.

If a supplier duplicates a credit note for goods returned, the effect will be (choose the appropriate option):

a)

An increase in the total amount owing shown on the statement of account

b)

A decrease in the total amount owing shown on the statement of account

c)

No effect at all

16.

Which one of the following transactions will be recorded on the receipts side of the cash book?

a)

Bank transfer of £10,000 to increase the owner’s capital

b)

Credit card payment for office stationery of £585

c)

Debit card payment to a trade payable for £450

d)

BACS payment of wages to employees for £8,490

17.

Which one of the following transactions will be recorded on the payments side of the cash book?

a)

Cash sales of £125

b)

BACS transfer from a trade receivable for £680

c)

Bank charges of £35

d)

Refund of bank charges of £35

18.

When dealing with petty cash vouchers, which one of the following statements is true?

a)

They are always authorised for payment by the petty cashier

b)

They must have relevant documentation attached to show that the amount claimed is correct

c)

They need to be completed only for amounts claimed above £25

d)

They are used to draw cash from the bank to top-up the petty cash imprest amount

19.

A firm’s petty cash book is operated on the imprest system. The imprest amount is £200. At the end of a particular period, the analysis columns are totalled as follows: VAT £19.86; postage £25.27; travel £33.54; stationery £52.22; cleaning £15.38. How much cash will be required to restore the imprest amount for the next period?

a)

£200.00

b)

£146.27

c)

£253.73

d)

£53.73

20.

A petty cash control account has a balance b/d of £175 at the beginning of a month. During the month, payments are made from petty cash which total £122. Which one of the following transactions will restore the balance of petty cash control account to £175?

a)

Debit bank £175; credit petty cash control £175

b)

Debit petty cash control £53; credit bank £53

c)

Debit petty cash control £122; credit bank £122

d)

Debit bank £122; credit petty cash control £122

21.

For most transactions, where is the first entry made in the accounting records?

a)

In the trial balance

b)

In the ledger

c)

In a book of prime entry

22.

Which of the following is correct?

a)

Capital = Assets + Liabilities

b)

Capital = Assets - Liabilities

c)

Capital = Liabilities - Assets

23.

Which of the following will give cleared funds in the recipient's bank account on the same day as they are sent?

a)

BACS payment

b)

CHAPS payment

c)

Cheque payment

24.

Which one of the following is not correct?

a)

An asset account will have a debit balance

b)

A liability account will have a debit balance

c)

An income will have a credit balance

25.

The trial balance is:

a)

A listing of all the balances of the accounts in the main ledger

b)

A listing of some of the balances of the accounts in the main ledger.

c)

A first attempt at balancing an account

26.

When an invoice is posted to a customer's sales ledger account, which of the following would you not expect to see entered in the sales ledger?

a)

Invoice date

b)

Invoice number

c)

Gross amount

d)

Net amount

27.

The Sales returns day book lists:

a)

Items received back from customers by the stores department

b)

Credit notes issued to customers

c)

Reports of the profit made on sales for the month

28.

Is the following statement True or False?

Suppliers' statements received can be ignored as the information should already be included in the purchases ledger.

a)

True

b)

False

29.

How will a refund due to the buyer be acknowledged and documented?

a)

By means of an invoice

b)

By means of a credit note

30.

How long are documents usually retained for?

a)

At least 2 years

b)

At least 6 years

c)

At least 5 years

d)

At least 3 years

31.

The accounts of trade receivables are contained in:

a)

Purchases ledger

b)

Sales ledger

c)

General ledger

32.

Carrymatzon Ltd sells goods which have a total list price of £1,200. The following discounts are available to the buyer:

• 20% normal trade discount

• trade discount of 25% for purchases over £2,000

The net amount to be charged before VAT will be:

a)

£900

b)

£960

c)

£930

33.

If a business receives a remittance advice from a customer and there is an underpayment of the account, the reason could be one of the following situations. Choose the correct option.

a)

The customer has paid a sales invoice twice in error

b)

The customer has failed to take a sales credit note into account

c)

There is a dispute over an invoice

d)

The payment has been late

34.

A purchase order should be checked by the buyer against:

a)

The supplier’s account

b)

The delivery note

c)

The remittance advice

35.

If a supplier duplicates a credit note for goods returned, the effect will be (choose the appropriate option):

a)

An increase in the total amount owing shown on the statement of account

b)

A decrease in the total amount owing shown on the statement of account

c)

No effect at all

36.

Which one of the following transactions will be recorded on the receipts side of the cash book?

a)

Bank transfer of £10,000 to increase the owner’s capital

b)

Credit card payment for office stationery of £585

c)

Debit card payment to a trade payable for £450

d)

BACS payment of wages to employees for £8,490

37.

Which one of the following transactions will be recorded on the payments side of the cash book?

a)

Cash sales of £125

b)

BACS transfer from a trade receivable for £680

c)

Bank charges of £35

d)

Refund of bank charges of £35

38.

When dealing with petty cash vouchers, which one of the following statements is true?

a)

They are always authorised for payment by the petty cashier

b)

They must have relevant documentation attached to show that the amount claimed is correct

c)

They need to be completed only for amounts claimed above £25

d)

They are used to draw cash from the bank to top-up the petty cash imprest amount

39.

A firm’s petty cash book is operated on the imprest system. The imprest amount is £200. At the end of a particular period, the analysis columns are totalled as follows: VAT £19.86; postage £25.27; travel £33.54; stationery £52.22; cleaning £15.38. How much cash will be required to restore the imprest amount for the next period?

a)

£200.00

b)

£146.27

c)

£253.73

d)

£53.73

40.

A petty cash control account has a balance b/d of £175 at the beginning of a month. During the month, payments are made from petty cash which total £122. Which one of the following transactions will restore the balance of petty cash control account to £175?

a)

Debit bank £175; credit petty cash control £175

b)

Debit petty cash control £53; credit bank £53

c)

Debit petty cash control £122; credit bank £122

d)

Debit bank £122; credit petty cash control £122