WorksheetsBOOK KEEPING
Total questions: 42
Worksheet time: 21mins
Which of the following is the primary objective of bookkeeping?
A) To calculate profit or loss
B) To record financial transactions
C) To manage inventories
D) To prepare payroll
A list of balances extracted from the ledger at a particular date is called a:
Trial balance
Balance sheet
Trading account
Income statement
Which of these is not recorded in a trial balance?
Sales
Closing stock
Purchases
Rent expense
The balance of which of these accounts is transferred to the profit and loss account?
Fixed assets
Purchases
Capital
Sales
What is the function of the journal in bookkeeping?
To record all cash transactions
To correct errors in the ledger
To record details of non-cash transactions
To prepare the trial balance
Which of these represents money owed by the business to others?
Debtors
Creditors
Stock
Cash
Which accounting concept states that financial statements should reflect the transactions of a business only and not its owners?
Business entity concept
Accrual concept.
Going concern concept.
Matching concept.
The owner’s withdrawal of goods for personal use should be debited to:
Sales account
Purchases account
Drawings account
Capital account
The dual aspect concept means that:
Every transaction affects two accounts
Every transaction should be recorded twice
Every transaction has a revenue and expense side
Every transaction has an owner’s equity aspect
A statement showing the financial position of a business at a particular date is called:
Trial balance
Balance sheet
Trading account
Profit and loss account
Which accounting convention requires that significant information be clearly disclosed in financial statements?
Consistency
Materiality
Disclosure
Prudence
Which of the following is a direct expense?
Rent
Carriage on purchases
Wages of administrative staff
Interest on loans
A book in which the double entry of each transaction is recorded is called a:
Cash book
Ledger
Daybook
Journal
The materiality concept suggests that:
All information must be disclosed in financial statements.
Only items significant enough to affect decisions should be disclosed
All information should be recorded at historical cost.
Revenues should be matched with expenses.
The cost of goods sold in a period is calculated as:
Opening stock + Purchases - Closing stock
Closing stock + Purchases - Opening stock
Purchases + Sales
Sales - Purchases
The term "current liabilities" refers to:
Debts that must be paid within a year
Debts that are paid over many years
Assets owned by the company
Money owed by customers
Which concept requires that transactions be recorded in the books of accounts at their monetary value?
Historical cost concept.
Materiality concept.
Prudence concept
Matching concept.
Which book is used to record small cash payments?
Cash book
Petty cash book
Sales daybook
Purchases daybook
What is the full meaning of VAT in bookkeeping?
Value Adjusted Tax
Valued-added Tax
Verified Accounting Tax
Value Applied Tax
What is the name given to the person to whom goods are sold on credit?
Debtor
Creditor
Lender
Borrower
Goods purchased by a business on credit are recorded in the
Sales ledger
Purchases journal
Cash book
Returns inward book
Which of the following principles ensures that all foreseeable losses are accounted for but not all foreseeable profits?
Matching
Materiality
Prudence
Consistency
In which book is a credit sale of goods recorded first?
Purchases journal
Sales journal
Cash book
Petty cash book
The return of goods by a customer to the seller is recorded in:
Returns Outward Journal
Returns Inward Journal
Purchases Journal
Sales Journal
The going concern concept assumes that a business:
Will be liquidated within the next year
Will continue to operate indefinitely.
Will reduce its operations significantly
Will merge with another business.
Which of the following is a fixed asset?
Bank balance
Land
Debtors
Stock
Which document serves as the source for recording transactions in a bookkeeping system?
Trial balance
Balance sheet
Source documents
Profit and Loss account
What does the accounting equation represent?
Assets = Liabilities + Capital
Assets = Revenue + Capital
Capital = Assets + Liabilities
Liabilities = Assets + Expenses
Which ledger is used for recording the accounts of suppliers?
Sales Ledger
Purchases Ledger
General Ledger
Nominal Ledger
Which of the following is an example of capital expenditure?
Payment of rent
Purchase of machinery
Wages to employees
Payment for electricity
When cash is withdrawn from the bank by the owner for personal use, it is called:
Drawings
Salary
Commission
Loan
Which of these is classified as a current asset?
Machinery
Bank overdraft
Cash in hand
Debenture
The term “credit” refers to:
An increase in assets
A decrease in liabilities
An increase in liabilities
A decrease in capital
Which concept ensures that a business uses the same accounting methods from one period to another?
Consistency
Prudence
Objectivity
Dual aspect
What is the double-entry principle in bookkeeping?
Every transaction affects only one account
Every transaction affects two or more accounts
Every transaction is recorded once
Every transaction is only recorded in a cash book
Which of the following is not an asset?
Cash
Debtors
Land
Creditors
Which of the following is an example of a liability?
Cash at hand
Furniture
Bank loan
Stock
What is the full meaning of VAT in bookkeeping?
Value Adjusted Tax
Value -added Tax
Verified Accounting Tax
Value Applied
Tax
Which of the following best defines the accrual concept?
Revenue is recognized when cash is received
Revenue is recognized when earned, regardless of when cash is received.
Expenses are recognized when paid
Revenue is recognized when the product is delivered.
The amount invested by the owner in a business is known as:
Profit
Loss
Capital
Drawings
Which of the following is an example of capital expenditure?
Payment of rent
Purchase of machinery
Wages to employees
Payment for electricity
The concept that expenses should be matched with revenues is known as the:
Accrual concept
Prudence concept.
Matching concept.
Historical cost concept
