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TOPIC 3 ACCOUNTIN CYCLE

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

The first step in the recording process is to

a)

prepare financial statements.

b)

analyze each transaction for its effect on the accounts.

c)

post to a journal.

d)

prepare a trial balance.

2.

After transaction information has been recorded in the journal, it is transferred to the

a)

trial balance.

b)

income statement.

c)

book of original entry.

d)

ledger.

3.

A debit is not the normal balance for which of the following?

a)

Asset account

b)

Drawings account

c)

Expense account

d)

Capital account

4.
An invoice used as a source document for recording a sale on account.
a)
source document
b)
sales invoice
c)
check
d)
entry
5.

The purchase journal is

a)

used only to record credit purchases

b)

used only to record cash purchases

c)

used to record all purchases

d)

all of the above

6.

The left side of an account is

a)

blank.

b)

a description of the account.

c)

the debit side.

d)

the balance of the account.

7.

A trial balance is a listing of

a)

transactions in a journal.

b)

the chart of accounts.

c)

general ledger accounts and balances.

d)

the totals from the journal pages.

8.

Issued by the seller when receive payments from the buyer.

a)

Purchase Order

b)

Payment Voucher

c)

Debit Notes

d)

Credit Notes

e)

Receipt

9.

Issued by the seller to the buyer in the event of a credit transaction.

a)

Invoice

b)

Delivery Notes

c)

Debit Notes

d)

Credit Notes

e)

Purchase Order

10.

Issued by the bank to the account holder at the end of the month.

a)

Receipt

b)

Payment Voucher

c)

Cheque Stubs

d)

Bank Slip

e)

Bank Statement

11.

Issued by the seller to the buyer to inform the buyer that his account has been credited in the seller’s books of accounts (reduce debt.)

a)

Invoice

b)

Delivery Notes

c)

Debit Notes

d)

Credit Notes

e)

Purchase Order

12.

In which special journal should the following transaction be recorded: Paid insurance annually in advance?

a)

Cash payment journal

b)

General journal

c)

Cash receipt jornal

d)

Purchase journal

13.

A ledger is a:

a)

Book of Accounts

b)

Book of Journals

c)

Book of numbers

d)

None of these