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MCQ O

Total questions: 7

Worksheet time: 7mins

Name
Class
Date
1.

Which actions does not reduce the owner's capital?

a)

business expenses paid using a personal cheque

b)

cash withdrawn from the business bank account for personal use

c)

goods taken from inventory for personal use

d)

personal expenses paid using business cash

2.

Which statement correctly describes the accounting equation?

a)

capital= assets-liabilities

b)

capital= assets + liabilities

c)

capital= current assets - current liabilities

d)

capital= current assets - current liabilties

3.

What could a credit balance on a ledger account represent?

a)

accrued income

b)

asset

c)

expense

d)

prepaid income

4.

Aiden purchased goods from Jai and paid for them by bank transfer when he received a statement of account. Jai says he has not received the payment?

Which document would help Aiden check that he had made the payment?

a)

bank statement

b)

cheque counterfoil

c)

paying in slip

d)

petty cash voucher

5.

At the end of the month, how is the total from the sales journal recorded in the ledger?

a)

credited to the customer's personal accounts

b)

credited to the sales account

c)

debited to the customers' personal accounts

d)

debited to the sales account

6.

A customer paid $15 600 to a supplier after receiving a 2 ½% cash discount and a trade discount of 20%.

What was the amount of the invoice entered in the purchases journal?

a)

$12 480

b)

$15 600

c)

$16 000

d)

$20 000

7.

The balance of cash at bank shown in the cash book is $1 200. The bank statement at the same date shows the balance to be $1440.

What could explain the difference?

a)

payment to supplier, $120, entered on the wrong side of the cash book

b)

bank charges, $240, not in the cash book

c)

cheques to suppliers, $240, not yet presented to the bank

d)

receipts from customers, $240, banked but not yet entered in the bank statement