3N EOY Revision 01

This stakeholder uses accounting information to decide whether to sell on credit to the business or not.

Who is this stakeholder?

• Manager

• Employee

• Supplier

• Lender

Name the two professional ethical values that accountants should have. [To pick more than one option.]

• Integrity

• Honesty

• Objectivity

• Unbiased

Which of the following is the correct sequence in the accounting information system?

• Source document - Ledger - Journal - Financial statements - Trial balance

• Source document - Journal - Ledger - Trial balance - Financial statements

• Ledger - Journal - Source document - Financial statements - Trial balance

• Journal - Ledger - Source document - Trial balance - Financial statements

Which of the following correctly explains what assets are?

• Assets are resource owed by the business.

• Assets are resource owed by the business that are expected to provide future benefits.

• Assets are resource owned by the business.

• Assets are resource owned by the business that are expected to provide future benefits.

Given that total assets = $20 000 and total liabilities = $15 000, calculate equity.

• Equity = Total assets = 20000

• Equity = Total assets - Total liabilities = 20000 - 15000

• Equity = Total liabilities = 15000

• Equity = Total liabilities - Total assets = 15000 - 20000

A business gives a discount to a customer for paying early.

What is this discount known as?

• Discount allowed

• Discount received

• Trade discount

• Trade agreement

What are the purposes of a trial balance? [To pick more than one option.]

• To facilitate the preparation of source documents

• To ensure mathematical accuracy in recording

• To facilitate the preparation of financial statements

• To ensure arithmetic accuracy in recording

(i) A business bought goods on credit.

(ii) The business paid the amount owed with a cheque a week later.

Name the source documents used in (i) and (ii).

• (i) invoice (ii) payment voucher

• (i) invoice (ii) bank statement

• (i) debit note (ii) payment voucher

• (i) debit note (ii) bank statement

(i) A business returned goods previously bought on credit to the supplier.

(ii) The business sold some goods and received a cheque.

Name the source documents used in (i) and (ii).

• (i) credit note (ii) bank statement

• (i) debit note(ii) bank statement

• (i) credit note (ii) receipt

• (i) debit note (ii) receipt