XI Accounting LEVEL 1

The following account has normally credit balance:

• Sales discount

• Purchases returns & allowance

• Sales Supplies

• Sales Equipment

The following is a non-current asset:

• Merchandise Inventory

• Office Supplies

• Fixtures

• Prepaid Insurance

The following is an operating expense:

• Purchases

• Transport-in

• Sales Discount

• Salaries Expenses

The following item is a current asset:

• Office Table

• Stationery

• Printer

• Split

  A.C

The following is a statement:

• Subsidiary

  ledger

• An accounts

  in general ledger

• Petty

  cash book

• Schedule

  of customers

The discount at the time of payment against purchase of merchandise on credit is called:

• Trade discount

• Cash discount

• Sales discount

• Payment discount

A Schedule of Accounts Payable contains:

• Cash purchases

• Credit purchases

• Customers’ balances

• Suppliers’ balances

The term 2/10, n/30 represents:

• The rate of depreciation

• The rate of bad debts

• The rate of cash discount

• The rate of trade discount

Invoice means:

• List of credit sales

• List of cash sales

• List of cash and credit sales

• Detail of sale for a transaction

The following account in a ledger is a result of misconception:

• Motor Vehicle

• Allowance for depreciation-Land

• Income Summary A/c

• Merchandise Inventory