Diagnostic Test - 5th Form Sept 2020

A transaction is entered in a 

• general journal
• general ledger
• t-account
• checkbook

________ proves the mathematical equality of debits and credits after posting

• Trial Balance
• Balance Sheet
• Income Statement
• Book of Original Entry

Which of the following can be found on both the income statement and on the balance sheet?

• Drawings

• Net profit

• Bank overdraft

• Account Receivable

All the following are internal users of accounting except:

• potential investors

• board of directors

• employees

• owners

Which of the following items will be recorded in the Returns Inwards Journal of L Cheng Ltd.?

• Sale made for cash

• Sales made on credit

• Customer returns faulty goods to L Cheng Ltd

• Faulty good return to a supplier by L Cheng Ltd.

When a transaction is credited in the bank column of the cash book what source of payment is used in this transaction?

• Cash

• Cheque

• Debit card

• Credit card

The source document entered in the Purchases Journal is a

• purchases invoice

• purchases receipt

• credit note

• debit note

Which of the following is NOT ethical principle of accounting:

• due care

• integrity

• subjectivity

• professional behaviour

Which of the following is NOT considered to be an outflow?

• Rent

• Sales

• Utilities

• Wages and salaries

The total in the purchases book signifies total

• cash and credit purchses

• credit purchases

• cash purchases

• purchases