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Unit 32 Quiz practice questions

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

A customer can earn a cash discount if

a)

He places a bulk order

b)

He becomes a regular customer

c)

He pays the account before the due date

d)

He refers new customers to the seller

2.

Provision for doubtful debt is in the

a)

Income statement

b)

Balance sheet

c)

Cashflow statement

d)

Capital account

3.

Bad debt is in the

a)

Income statement

b)

Balance sheet

c)

Cashflow statement

d)

Capital account

4.

Where would accounts payable appear in the balance sheet?

a)

Current assets

b)

Current liabilities

c)

Non-current assets

d)

Non-current liabilities

5.

Which account will appear in current assets?

a)

Accounts payable

b)

Capital

c)

Loan

d)

Accounts receivable

6.

What is the main reason for monitoring accounts receivable?

a)

To produce financial statements

b)

To remind customers to pay their invoices

c)

To comply with legal requirements

d)

To increase the liquidity of the organization

7.

Which ledger entries record the purchase of computers bought on credit?

a)

debit creditors, credit equipment

b)

debit creditors, credit purchases

c)

debit equipment, credit creditors

d)

debit purchases, credit creditors

8.

5/15 N30 in an invoice means that

a)

The invoice should be paid in 30 days

b)

The goods should be delivered in 30 days

c)

A discount will be given in 30 days

d)

There is an early payment discount of 30% on the account

9.

5/15 N30 in an invoice means that

a)

The invoice should be paid in 15 days

b)

The goods should be delivered in 30 days

c)

A discount of 5% will be given in 15 days

d)

There is an early payment discount of 15% on the account

10.

What is included in a procedure for the use of a debtor's records system?

a)

Recording of cash sales

b)

Recording of cash purchases

c)

Recording of sales invoices

d)

Recording of purchase invoices