Bookkeeping Assignment 4

To find the value of closing inventory at the end of a period we

• do this by stocktaking

• look in the inventory account

• deduct opening inventory from cost of sales

• deduct cost of sales from sales

Which of the following best describes a trial balance?

• It shows the financial position of a business

• It is a special account

• It shows all the entries in the books

• It is a list of balances on the books

Gross profit is_________________.

• Net profit - expenses

• Cost of goods sold + opening inventory

• Sales - purchases

• Revenue - cost of goods sold

Discount received are _____________.

• Deducted when we received cash

• Given by us when we sell goods on credit

• Deducted for us when we pay our accounts

Which of the following is considered as liabilities?

• Bank

• Bank Overdraft

• Buildings

• Property

Gross profit is calculated in the ________.

• Trial Balance

• Statement Of Financial Position

• Income Statement

• Cash Account

The book of original entry is the definition of a __________.

• Journal

• Ledger

Which of the following balances is to be shown in the Statement of Financial Position as Non- Current liability?

• Other Payable

• Accounts Payable

• Bank Overdraft

• Bank Loan

Which of the following is a debit balance?

• Accounts Payable

• Salaries

• Bank Overdraft

• Loan from Ali

Which of the following should not be called “Sales”?

• Office Fixture sold

• Goods sold on credit

• Goods sold for cash

• Sale of item previously included in ‘Purchases’