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Control Accounts

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Why do business give discount allowed ?

a)

For Bulk buying

b)

For Prompt payment

c)

To Avoid error

d)

To check arithmetical accuracy

2.

What is meant by return outward?

a)

Sales return

b)

Bad debt

c)

Purchase return

d)

trade discount

3.

Cash purchases do not affect the creditors' control accounts at all - True or False

a)

True

b)

False

4.

What is bad debt?

a)

It is a Known loss

b)

It is a discount

c)

It is a sales return

d)

It is a depreciation

5.

Trade creditors are the same as trade payables - True / False

a)

True

b)

False

6.

You owe Barbi $100 for goods you purchased last month. Is Barbi a trade payable or trade creditor?

a)

Trade Creditor

b)

Trade Payable

7.

A trade debtor is the same as a trade receivable - True / False

a)

True

b)

False

8.

Urooj owes you $100 for goods she purchased last month. Is she a trade debtor or a trade creditor.

a)

Trade debtor

b)

Trade Creditor

9.

Purpose of control accounts.

a)

To calculate profit made by the business

b)

To check the accuracy of the entries and locate the errors

10.

What are the Main Control Accounts?

a)

Sales ledger control accounts and Purchase ledger control accounts.

b)

Cash book and Petty cash book

c)

Sales day book and Purchase day book