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WorksheetsBusiness Studies Mid Term Test
Total questions: 50
Worksheet time: 25mins
What is a source document?
A book used for recording wages
A document that authorizes salary payment
A document that provides original information used in accounts
A document used for buying stock
Which of the following is a type of source document?
Ledger
Receipt
Chart
Bank statement
A receipt is used as:
Proof of income
Evidence of payment
Inventory control
A budget report
An invoice is issued when:
A purchase is returned
Goods or services are sold
A cheque is bounced
Payment is delayed
What is a debit note used for?
Correcting an overcharge
Requesting payment
Correcting an undercharge
Approving salaries
A credit note corrects:
Late delivery
Payment by cash
An overcharge
Bank error
What is a payment voucher used for?
Depositing money
Requesting inventory
Authorizing payment
Making sales
A cash register tape:
Acts as a receipt for salaries
Authorizes expenditure
Is used for printing cash transaction details
Replaces a cheque
A cheque is a:
Note of payment
Verbal agreement to pay
Written instruction to a bank
Type of account
Who is the drawer of a cheque?
The bank
The person cashing the cheque
The account owner who writes the cheque
The customer
The drawee in a cheque transaction is:
The payee
The receiver
The account owner
The bank
The payee is:
The person who writes the cheque
The bank
The person to be paid
The cashier
Which document is used when an item is overcharged?
Debit note
Invoice
Credit note
Voucher
A source document is primarily used for:
Decoration
Bookkeeping
Printing
Importing goods
What party is responsible for paying the money when a cheque is written?
Payee
Drawer
Drawee
Accountant
Double Entry Bookkeeping Double entry bookkeeping means:
Recording a transaction twice
Using two accountants
Every debit has a corresponding credit
Making errors in account
The golden rule for bookkeeping is:
Credit all assets
Debit the giver, credit the receiver
Debit the receiver, credit the giver
Record only cash
Who receives the debit entry in a transaction?
The buyer
The receiver
The bank
The seller
When a person gives something, their account is:
Debited
Balanced
Credited
Ignored
What is the term for money used to start a business?
Asset
Income
Capital
Expense
In the transaction "Chuks started business with ₦28,000," which account is debited?
Capital Account
Cash Account
Rent Account
Sales Account
Which account is credited in the transaction mentioned above?
Bank
Rent
Sales
Capital
When rent of ₦2,000 is paid by cheque, which account is debited?
Rent
Sales
Cash
Capital
The corresponding account to credit when rent is paid by cheque is:
Rent
Bank
Cash
Capital
Selling goods worth ₦5,000 means:
Debit sales, credit cash
Credit sales, debit cash
Debit rent, credit sales
Credit bank, debit capital
The ledger is also called:
Source document
Cheque book
Book of original entry
Bank statement
A personal account records transactions with:
Banks
Companies
Individuals
Governments
Which of the following is an example of a real account?
Rent
Chuks
Land and buildings
Wages
Nominal accounts are used to record:
Properties
Individuals
Expenses
Loans
Capital and drawings accounts fall under:
Personal account
Private account
Real account
Nominal account
In which book would you find the Rent Account?
Sales book
Ledger
Journal
Receipt book
The account that records goods sold is the:
Cash Account
Sales Account
Purchase Account
Capital Account
Who is credited in a transaction where goods are sold?
Sales Account
Buyer
Cashier
Customer
If a business pays for insurance, the type of account is:
Real
Personal
Nominal
Capital
Which of these is not a source document?
Cheque
Ledger
Credit Note
Receipt
The double entry for paying salaries would be:
Debit cash, credit salary
Debit salary, credit bank
Debit bank, credit capital
Debit capital, credit salaries
An entry in the Cash Account would likely come from:
A source document
A ledger
A memo
A journal
The act of debiting and crediting accounts occurs in the:
Bank
Ledger
Receipt book
Payroll
A machine that prints details of cash transactions is a:
Bank machine
Receipt printer
Cash register
Ledger printer
Which of the following would be found in a nominal account?
Equipment
Motor vehicle
Rent expense
Debtor
A debit note increases the amount owed.
True
False
A credit note is given when a buyer is undercharged.
True
False
The payee writes the cheque.
True
False
Personal accounts include businesses and banks.
True
False
The cash account is a real account.
True
False
Which document serves as proof of goods returned?
Invoice
Credit Note
Cheque
Debit Note
Which account records payments made by cheque?
Bank Account
Sales Account
Cash Account
Capital Account
When a customer is undercharged, what document is issued?
Debit Note
Receipt
Invoice
Cheque
The receiver is always:
Debited
Credited
Ignored
Balanced
The giver is:
Debited
Balanced
Credited
Not recorded
