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GJ, GL, TB, Inventory card review

Total questions: 39

Worksheet time: 24mins

Name
Class
Date
1.

Cost price is $50 plus GST each. $50 is ....

a)

total cost price

b)

unit cost price

2.

Purchased inventory for $110 plus GST.

a)

$110 is the unit cost price

b)

$110 is the total cost price

3.

Purchased 10 items of inventory for $110 GST inclusive. What is the unit cost price?

a)

11

b)

10

4.

the owner took out $3,000 cash for his personal use.

a)

Record $3,000 as OUT in the inventory card.

b)

We do not record this in the inventory card because it is not about inventory.

c)

Record $3,000 as drawings in the inventory card.

5.

Sold 35 frames for $100 each plus GST.

a)

Record 35 frames in the OUT column and use the oldest cost price in the OUT column.

b)

Record 35 frames in the OUT column and use $100 as unit cost price.

c)

Record 35 frames in the OUT column and use the oldest cost price in the balance column.

6.

Purchased 30 books for $1,650 GST inclusive

a)

Record 30 books in the IN column and use $55 as unit cost price.

b)

Record 30 books in the IN column and use $50 as unit cost price.

c)

Record 30 books in the IN column and use the $1,500 as unit cost price.

d)

Record 30 books in the IN column and use $1,650 as unit cost price

7.

Before recording any IN or OUT transactions, we need to find the opening balance of the inventory.

a)

False

b)

True

8.

Purchased 40 books for $1,760 GST inclusive. What is the unit cost price?

(a)  

9.

Sold 50 books for $50 each plus GST. What is the amount for sales to record on the journal?

(a)  

10.

Sold 50 books for $50 each plus GST. What is the GST Clearing to put on the journal?

(a)  

11.

A cash sales transaction from a trading business, accounts to be recorded on the journal are:

a)

Bank, Sales, GST Clearing

b)

Bank, Sales, GST Clearing, Cost of Sales, Inventory

c)

Accounts Receivable, Sales, GST Clearing, Cost of Sales, Inventory

d)

Bank, Service fees, GST Clearing

12.

The owner took out 10 books for a display at the community centre.

a)

This is owner's drawings.

b)

This is donation for advertising.

c)

This is owner's contribution.

d)

This is a sales.

13.

Sales of inventory ___ to be recorded on inventory card using cost price.

a)

need

b)

don't need

14.

Owner took out 10 books from inventory for his daughter to read at home.

a)

This is owner's drawings.

b)

This is a donation for advertising

c)

This is a contribution from owner.

d)

This is a sales.

15.

Sales, Drawings, Donation for advertising are recorded in which column on the inventory card?

a)

OUT

b)

IN

16.

Sales returns are recorded in which column in the inventory card?

(a)  

17.

Purchase returns are recorded in which column in the inventory card?

a)

OUT

b)

IN

18.

Inventory card says there are 50 books. But there are 30 books in the actual warehouse.

a)

Inventory loss is 20 books

b)

Inventory gain is 20 books.

19.

Inventory loss is recorded in which column in the inventory card?

a)

OUT

b)

IN

20.

Inventory card says there are 30 books. There are 40 books in the actual warehouse.

a)

Inventory loss is 10 books.

b)

Inventory gain is 10 books.

21.

Inventory gain is recorded in which column in the inventory card?

a)

OUT

b)

IN

22.

The business is called ABC. Its supplier is called DEF. Its customer is called XYZ. XYZ returned 2 books with full credit.

a)

This is a purchase return.

b)

This is a sales return.

23.

The business is called ABC. Its supplier is called DEF. Its customer is called XYZ. ABC returned the damaged books to DEF with full credit of $300 plus GST.

a)

This is a purchase return.

b)

This is a sales return.

24.

For purchase returns, we use the ________ in the inventory card.

a)

the oldest cost price in the balance column.

b)

The latest cost price in the OUT column.

c)

The cost price given in the transaction.

25.

For sales return, we use ________ in the inventory card

a)

the oldest cost price in the balance column

b)

the latest cost price in the out column.

c)

the cost price given in the transaction.

26.

For inventory gain, we use _________

a)

the oldest cost price in the balance column.

b)

the latest cost price in the out column.

c)

the latest purchase price in the IN column.

27.

For inventory loss, we use __________

a)

the oldest cost price in the balance column.

b)

the latest cost price in the OUT column.

28.

Petrol expense of $600 plus GST was incorrectly recorded as $500 plus GST. Correcting entries on the journal would be:

a)

Petrol debit 100, GST Clearing debit 100, Bank credit 110.

b)

Bank debit 550, Petrol credit 500, GST Clearing credit 50

29.

Which QC can we use to explain the importance of checking the actual stock?

a)

Timeliness

b)

Faithful Representation

c)

Understandability

d)

Comparability

30.

Pre-adjusted Trial Balance can balance but it still can be incorrect because:

a)
  • a transaction has been omitted/ forgotten completely.

b)

an account has been omitted/ forgotten completely.

31.

Pre-adjusted Trial Balance can balance but it still can be incorrect because:

a)
  • a transaction has been recorded twice.

b)
  • an account has been recorded twice.

32.

Pre-adjusted Trial Balance can balance but it still can be incorrect because:

a)
  • a transaction has been reversed.

b)
  • the debit and credit accounts of a transaction have been reversed.

33.

To ensure Ledger accounts are correct, we should...

a)

write the cross-reference account first on the correct side in the Ledger.

b)

write the amount first on the correct side in the Ledger.

34.

When footing Ledger accounts, we write the balance ....

a)

on the side where the greater amount is.

b)

on the side where the smaller amount is.

c)

in the middle of the ledger account

35.

Pre-adjusted Trial Balance includes ...

a)

figures from Journal

b)

figures from Ledgers

c)

footed figures from Ledgers

36.

On the pre-adjusted trial balance, we must write the total amount on the debit side and credit side.

a)

False!

b)

True!

37.

If the footed figure is on the debit side of the Ledger account,

a)

we need to put it on the credit side of the Pre-Adjusted Trial Balance.

b)

we need to put it on the debit side of the Pre-Adjusted Trial Balance.

38.

Accountants prepare the Pre-adjusted Trial Balance because....

a)

it must be done after Ledger accounts.

b)

it will help them prepare accurate financial reports later.

c)

they need to check if the pre-adjusted trial balance will balance.

39.

When correcting entries on the Ledger accounts, we need to make sure that the Ledgers for the whole month also show ....

a)

the correct entries only.

b)

the incorrect entries (errors)

c)

the balance.