F3 (C1-C6)

Which one of the following can the accounting equation can be rewritten as?

• Assets + profit – drawings – liabilities = closing capital

• Assets – liabilities – drawings = opening capital + profit

• Assets – liabilities – opening capital + drawings = profit

• Assets – profit – drawings = closing capital – liabilities

A trader's net profit for the year may be computed by using which of the following formulae?

• Opening capital + drawings – capital introduced – closing capital

• Closing capital + drawings – capital introduced – opening capital

• Opening capital – drawings + capital introduced – closing capital

• Opening capital – drawings – capital introduced – closing capital

A business can make a profit and yet have a reduction in its bank balance. Which ONE of the following might cause this to happen?

• The sale of non-current assets at a loss

• The charging of depreciation in the statement of profit or loss

• The lengthening of the period of credit given to customers

• The lengthening of the period of credit taken from suppliers

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

• Debit note

• Remittance advice

• Purchase invoice

• Credit note

Which of the following are books of prime entry?

1 Sales day book

2 Cash book

3 Journal

4 Purchase ledger

• 1 and 2

• 1,2 and 3

• 1 only

• all of them

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

• The sales returns day book

• The cash book

• The purchase returns day book

• The purchase day book

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

• Discounts allowed

• Sales invoices

• Credit notes received

• Trade discounts

Which of the following statements is true?

• A debit records an increase in liabilities.

• A debit records a decrease in assets.

• A credit records an increase in liabilities.

• A credit records a decrease in capital.

How is the total of the purchases day book posted to the nominal ledger?

• Debit purchases, Credit cash

• Debit payables control, Credit purchases

• Debit cash, Credit purchases

• Debit purchases, Credit payables control

Which one of the following statements about an imprest system of petty cash is correct?

• An imprest system for petty cash controls small cash expenditures because a fixed amount is paid into petty cash at the beginning of each period.

• The imprest system provides a control over petty cash spending because the amount of cash held in petty cash at any time must be equal to the value of the petty cash vouchers for the period.

• An imprest system for petty cash can operate without the need for petty cash vouchers or receipts for spending.

• An imprest system for petty cash helps with management of small cash expenditures and reduces the risk of fraud.