8. Which one of the following provides evidence that an item of expenditure on petty cash has been approved or authorised?

B. Record of the transaction in the petty cash book

D. Transfer of cash from the bank account into petty cash

9. How is the total of the sales day book recorded in the nominal ledger? Debit Credit

D. Receivables Control Account Sales

A. Receivables Ledger Receivables Control Account

B. Receivables Control Account Receivables Ledger

C. Sales Receivables Control Account

11. A trial balance is made up of a list of debit balances and credit balances. Which of the following statements is correct?

B. Assets are represented by debit balances

A. Every debit balance represents an expense

C. Liabilities are represented by debit balances

D. Income is included in the list of debit balances

12. Which of the following statements is/are TRUE or FALSE? 1 Cash purchases are recorded in the purchases day book. 2 The sales day books is used to keep a list of invoices received from suppliers

C. Statement 1 is TRUE and statement 2 is FALSE

D. Statement 1 is FALSE and statement 2 is TRUE

E. Statement 1 is FALSE and statement 2 is TRUE

13. Which pair of the following items would appear on the same side of the trial balance?

B. Carriage outwards and prepayments

C. Carriage inwards and rental income

D. Opening inventory and purchase returns

14. The double-entry system of bookkeeping normally results in which of the following balances on the ledger accounts? Debit balances: Credit balances:

C. Assets and expenses Liabilities, capital and revenues

A. Assets and revenues Liabilities, capital and expenses

B. Revenues, capital and liabilities Assets and expenses

D. Assets, expenses and capital Liabilities and revenues

15. Which one of the following statements best describes the purpose of a purchase order?

A. It is issued to a supplier to request supply of goods from them on terms specified within the order

B. It is issued to a customer to confirm the supply of goods to them on terms specified in the order

C. It is issued to a supplier as notification of payment

D. It confirms the price that will be charged by a supplier for goods supplied

16. Which one of the following statements best describes the purpose of a goods despatched note (delivery note)?

C. It is issued by a supplier to their customer and specifies the quantity and type of goods delivered to that customer

A. It is issued by a customer returning faulty goods to their supplier

B. It is issued by a customer to their supplier and specifies the quantity and type of goods they require to be despatched

D. It is issued by a supplier to their customer and specifies what goods will be provided to them at a specified future date

17. Which one of the following explains the imprest system of operating petty cash?

B. The exact amount of expenditure is reimbursed at intervals to maintain a fixed float

A. Weekly expenditure cannot exceed a set amount

C. All expenditure out of the petty cash must be properly authorised

D. Regular equal amounts of cash are transferred into petty cash at intervals

18. Jones Co has the following transactions: 1 Payment of $400 to J Bloggs for a cash purchase 2 Payment of $250 to J Doe in respect of an invoice for goods purchased last month What are the correct ledger entries to record these transactions?

C. Dr Purchases $400 Dr Trade Payables $250 Cr Cash $650

A. Dr Cash $650 Cr Purchases $650

B. Dr Purchases $650 Cr Cash $650

D. Dr Cash $650 Cr Trade Payables $250 Cr Purchases $400

19. Smith Co has the following transactions: 1 Purchase of goods on credit from T Rader: $450 2 Return of goods purchased on credit last month to T Rouble: $700 What are the correct ledger entries to record these transactions?

C. Dr Purchases $450, Dr Trade Payables $250, Cr Purchase Returns $700

A. Dr Purchases $450 ,Dr Purchase Returns $700 ,Cr Cash $450 ,Cr Trade Payables $700

B. Dr Purchases $450, Dr Trade Payables $700, Cr Purchase Returns $1,150

D. Dr Purchase Returns $700, Dr Purchases $450, Cr Trade Payables $1,150

20. Mew Ling has the following transactions: 1 Receipt of cash from R Singh in respect of an invoice for goods sold three weeks ago 2 Receipt of cash from S Kalu for cash sales What are the correct ledger entries to record these transactions?

B. Dr Cash Cr Sales Cr Trade Receivables

D. Dr Trade Receivables Dr Sales Cr Cash

21. Tin Co purchases $250 worth of metal from Steel Co. Tin Co agrees to pay Steel Co in 60 days time. What is the double entry to record the purchase in Steel Co’s books?

C. Debit receivables $250, credit sales $250

A. Debit sales $250, credit receivables $250

B. Debit purchases $250, credit payables $250

D. Debit payables $250, credit purchases $250

22. Oscar runs a sole trader business selling computers. On 12 January 20X7, he employed his daughter as an administrator for the business and took a computer from the store room for her to use in the office. What is the double entry for this transaction?

B. Dr Non-current assets Cr Cost of sales

A. Dr Drawings Cr Cost of sales

C. Dr Cost of sales Cr Drawings

D. Dr Cost of sales Cr Non-current assets

23. Andrea started a taxi business by transferring her car, at a value of $5,000, into the business. What accounting entries are required to record this transaction?

C. Dr Car $5,000, Cr Capital $5,000

A. Dr Capital $5,000, Cr Car $5,000

B. Dr Car $5,000, Cr Drawings $5,000

D. Dr Drawing $5,000 Cr Car $5,000

24. Which one of the following statements is true in relation to the non-current asset register?

D. It is a schedule of the cost and other information about each individual non-current asset

A. It is an alternative name for the non-current asset ledger account

B. It is a list of the physical non-current assets rather than their financial cost

C. It is a schedule of planned maintenance of non-current assets for use by the plant engineer

26. Which one of the following items should be accounted for as capital expenditure?

D. Legal fees incurred on the purchase of a building

A. The cost of painting a building

B. The replacement of broken windows in a building

C. The purchase of a car by a car dealer for re-sale

27. What is the correct accounting treatment for an intangible asset with an indefinite useful life?

B. It is recognised at cost and is subject to an annual impairment review

A. It is recognised at cost for as long as the entity has the intangible asset

C. It is recognised at cost and the entity must make an estimate of estimated useful life so that it can be amortised

D. It cannot be recognised as an intangible asset as it would not be possible to calculate an annual amortisation charge

Chapter 2- KTQT

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

1 : Which of the following are books of prime entry?

A. Sales day book and trial balance

B. Petty cash book and accounts receivables ledger

C. Petty cash book and journal

D. Purchase day book and accounts payable ledger

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

2. In which book of prime entry would a business record the part-exchange value received for a vehicle traded in when purchasing a new vehicle?

A. The sales daybook

B. The cash payments book

C. The journal

D. The non-current asset register

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

3 : Which one of the following best describes the purpose of a purchase invoice?

A. It is issued by a supplier as a request for payment

B. It is sent to supplier as a request for a supply

C. It is issued by supplier listing details of recent transactions

D. It is sent to the supplier as notification of payment

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

4 : In which book of prime entry would discounts received be recorded?

A. Cash received book

B. Cash payments book

C. Sales day book

D. Purchases day book

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

5. Which of the following documents should accompany a return of goods to a supplier?

A. Debit note

B. Remittance advice

C. Purchase invoice

D. Credit note

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

6. In which book of prime entry will a business record debit notes in respect of goods which have been sent back to suppliers?

A. The sales returns day book

B. The cash book

C. The purchase returns day book

D. The purchase day book

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

7. Which of the following would be recorded in the sales day book?

A. Discounts allowed

B. Sales invoices

C. Credit notes received

D. Trade discounts

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Chapter 2- KTQT

1 : Which of the following are books of prime entry?

2. In which book of prime entry would a business record the part-exchange value received for a vehicle traded in when purchasing a new vehicle?

3 : Which one of the following best describes the purpose of a purchase invoice?

4 : In which book of prime entry would discounts received be recorded?

5. Which of the following documents should accompany a return of goods to a supplier?

6. In which book of prime entry will a business record debit notes in respect of goods which have been sent back to suppliers?

7. Which of the following would be recorded in the sales day book?

8. Which one of the following provides evidence that an item of expenditure on petty cash has been approved or authorised?

9. How is the total of the sales day book recorded in the nominal ledger?Debit Credit

10. Are the following statements about debit entries true or false? 1 A debit entry in the cash book will increase an overdraft in the accounts. 2 A debit entry in the cash book will increase a bank balance in the accounts.

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9. How is the total of the sales day book recorded in the nominal ledger?
Debit Credit

10. Are the following statements about debit entries true or false? 1 A debit entry in the cash book will increase an overdraft in the accounts.
2 A debit entry in the cash book will increase a bank balance in the accounts.