WorksheetsFlow of Transactions Quiz
Total questions: 57
Worksheet time: 29mins
What is the first step in the flow of transactions?
Ledgers
Transactions
Income statement
Trial balance
Which step comes after the ledgers in the flow of transactions?
Books of prime entries
Statement of Financial Position
Trial balance
Transactions
What is the purpose of the income statement in the flow of transactions?
To list transactions
To show performance of entity
To summarize debits and credits
To record invoices
What are source documents used for?
To find original information
To create new information
To delete information
To hide information
Which of the following is an example of a source document?
Sales invoice
Shopping list
Birthday card
Newspaper
Who uses source documents?
All businesses and organizations
Only schools
Only families
Only sports teams
Which of the following is an example of a source document?
Invoice
Notebook
Textbook
Magazine
What is a credit note used for?
To record a sale
To correct an invoice
To write a story
To draw a picture
Which document is used to deposit money into a bank account?
Cheque counterfoil
Paying-in slip
Receipt
Petty cash voucher
What is a receipt used for?
To show proof of payment
To write a letter
To make a phone call
To draw a map
What is the purpose of books of original (prime) entry?
To record transactions initially by type
To calculate taxes
To create financial statements
To manage employee payroll
Which book is used for recording credit sales?
Cash book
Sales day book
Purchases day book
Journal
Which book is used for recording credit purchases?
Sales Return book
Cash book
Purchases day book
Purchase Return book
Which book is used for recording cash transactions?
Journal
Cash book
Sales Return book
Purchase Return book
What is the total amount of money in the Debit/Inward column?
₹15,000
₹23,000
₹38,000
₹3,700
On what date was the electricity bill paid?
15-12-16
17-12-16
18-12-16
03-12-16
How much was spent on company vehicle repair?
₹1,200
₹2,000
₹500
₹15,000
What is the cash on hand amount?
₹34,300
₹38,000
₹3,700
₹23,000
What is a cash book used for?
To record credit sales
To enter cash and bank receipts and payments
To record sales returns
To write personal notes
What does a sales day book contain?
Cash sales
Credit (non-cash) sales
Personal expenses
Bank transactions
What is recorded in a sales return day book?
New sales
Sales returns
Cash payments
Bank deposits
What does the Purchases day book contain?
Cash purchases
Credit (non-cash) purchases
Goods returned to suppliers
Less common transactions
What is the Purchases returns day book used for?
Recording cash purchases
Recording goods returned to suppliers
Recording less common transactions
Recording credit purchases
What is the Journal used for?
Recording credit purchases
Recording cash purchases
Recording less common transactions
Recording goods returned to suppliers
What is a sales ledger used for?
Shows records of suppliers' personal accounts
Shows records of customer's personal accounts
Contains non-current assets and capital
Contains all types of ledgers
Which ledger shows records of suppliers' personal accounts?
Sales ledger
General ledger
Purchase ledger
Debit ledger
What does the general ledger contain?
Only sales records
Only purchase records
Remaining double entry accounts, such as expenses
Only customer accounts
What does every transaction affect in the double entry system?
One item
Two items
Three items
Four items
What must be shown in the accounting books according to the double entry system?
Only profits
Only losses
The effects of transactions
The number of transactions
What is the name of the bookkeeping method where debit always equals credit?
Single entry bookkeeping
Triple entry bookkeeping
Double entry bookkeeping
Quadruple entry bookkeeping
What happens to the bank asset when the owner pays capital into the bank?
It decreases
It stays the same
It increases
It disappears
When shop premises are purchased by cheque, what happens to the bank asset?
It increases
It decreases
It stays the same
It doubles
What is the effect on inventory when it is bought on credit?
Inventory decreases
Inventory stays the same
Inventory increases
Inventory disappears
What happens to accounts receivable when inventory is sold on credit?
It decreases
It increases
It stays the same
It disappears
When a debtor pays money owing by cheque, what happens to the bank asset?
It decreases
It increases
It stays the same
It disappears
What is the left-hand side of a T-account called?
Credit side
Debit side
Title side
Chronological side
What is the right-hand side of a T-account called?
Debit side
Title side
Credit side
Chronological side
How should dates be arranged in a T-account?
Random order
Alphabetical order
Chronological order
Reverse order
What does the line in the T-account represent?
The top of the T
The downstroke of the T
The middle of the T
The bottom of the T
Which side of the T-account is the debit side?
Left side
Right side
Top side
Bottom side
Which side of the T-account is the credit side?
Left side
Right side
Top side
Bottom side
What is the entry in the account when there is an increase in Assets?
Credit
Debit
Increase
Decrease
What is the entry in the account when there is a decrease in Liabilities?
Debit
Credit
Increase
Decrease
What is the entry in the account when there is an increase in Capital?
Debit
Credit
Increase
Decrease
What happens to a capital account when it increases?
It decreases
It stays the same
It increases
It disappears
What happens to an asset account when it decreases?
It increases
It decreases
It stays the same
It doubles
What happens to a liability account when it increases?
It decreases
It increases
It stays the same
It disappears
In double entry book-keeping, what happens to assets when they are debited?
They increase
They decrease
They stay the same
They are removed
What happens to liabilities when they are credited in double entry book-keeping?
They increase
They decrease
They stay the same
They are removed
In double entry book-keeping, what effect does a debit have on expenses?
They increase
They decrease
They stay the same
They are removed
What happens to income when it is credited in double entry book-keeping?
It increases
It decreases
It stays the same
It is removed
In double entry bookkeeping, which of the following is recorded on the debit side?
Liability
Income
Asset
Capital
Which item is recorded on the credit side in double entry bookkeeping?
Expense
Drawings
Liability
Asset
What happens to the asset of stock when a sale is made?
It increases
It decreases
It stays the same
It doubles
What happens to the asset of stock when a purchase is made?
It decreases
It disappears
It increases
It stays the same
What happens to the asset of stock when customers return goods?
It stays the same
It decreases
It increases
It disappears
What happens to the asset of stock when goods are returned to suppliers?
It increases
It stays the same
It disappears
It decreases
