Accounting IGCSE Review

Entering transactions in ledger is the task performed by ... .

• Accountant

• Auditor

• Book-keeper

• Tax Advisor

Motor vehicles, equipment, and machinery are examples of ... .

(a)  

The business purchased premises, $15 000, and paid by cheque. Which accounts are affected in the accounting equation?

• Asset only

• Asset and liability

• Capital only

• Asset and capital

........ is a document issued by a seller of goods on credit to notify of a reduction in the purchase recorded.

• Credit note

• Debit note

• Invoice

• Statement of account

Revenue $72 500

Purchases $49 700

Closing inventory $4 800

Carriage inwards $1 150

Carriage outwards $2 950

How much is the gross profit?

• $22 800

• $24 650

• $26 450

• $27 600

Financial statements are prepared to produce detailed financial information of ... .

• The previous year

• The current year

• The following year

• The three consecutive years

If a company has total liabilities of $30,000 and total assets of $50,000, what is the owner's equity?

• $80,000

• $50,000

• $30,000

• $20,000

If a company has total assets of $100,000 and owner's equity of $40,000, what are the total liabilities?

• $80,000

• $60,000

• $40,000

• $100,000

A business sold goods worth $10,000 on credit. Which accounts are affected in the accounting equation?

• Asset and capital

• Asset and liability

• Liability only

• Capital only