Accounting Quiz (0452_s24_qp_12)

How does a trader use the information provided by financial statements?

• to calculate the amount of cash drawings taken

• to calculate the amount that is owed by trade receivables

• to check the balance shown on a bank statement

• to compare the business performance over a number of years

What was the total of the liabilities?

• $13 920

• $14 890

• $15 270

• $17 270

What does this balance represent?

• amount owing for stationery on 1 January 2021

• amount paid for stationery during 2020

• cost of stationery used during 2020

• inventory of stationery on 1 January 2021

How was the total of this book of prime entry recorded in the nominal ledger at the end of August?

• credited to the purchases returns account

• debited to the purchases returns account

• credited to the sales returns account

• debited to the sales returns account

Which business documents are used as sources of information to make entries in the cash book?

• bank statement, cheque counterfoil, invoice, paying-in slip

• bank statement, cheque counterfoil, invoice, receipt

• bank statement, cheque counterfoil, paying-in slip, receipt

• cheque counterfoil, paying-in slip, petty cash voucher, receipt

What is the double entry for recording a cheque payment to a credit supplier?

• bank account,

  purchases ledger account

• bank account

  sales ledger account

• purchases ledger account

  bank account

• sales ledger account

  bank account

A book-keeper made two errors which cancelled each other out.

Which type of error did he make?

• compensating

• complete reversal

• original entry

• principle

What error was made when the sales journal was totalled?

• overcast by $130

• overcast by $200

• undercast by $130

• undercast by $200

Which entries did he make to correct the error?

• A

• B

• C

• D

What would result in the cash book balance being lower than the bank statement balance?

• A cheque received from a customer was not recorded in the bank statement.

• A customer’s cheque dishonoured by the bank appeared only on the bank statement.

• Payment by a customer directly into the bank was not recorded in the cash book.

• Payment of insurance by standing order was not recorded in the cash book.