1162585
Description
Quiz by Shaikh Emad Gohar, updated more than 1 year ago
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Created by Shaikh Emad Gohar
over 10 years ago
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Question 1
Question
Which of the following is the accounting equation?
Answer
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Assets + Liabilities = Capital + Profit – Drawings
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Assets – Liabilities = Capital + Profit + Drawings
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Assets – Liabilities = Capital + Profit – Drawings
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Assets + Liabilities = Capital – Profit + Drawings
Question 2
Question
Which of the following is incorrect?
Answer
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A debit entry increases assets A debit entry increases drawings A credit entry increases profit
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A debit entry decreases liabilities A credit entry increases capital A credit entry increases profit
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A credit entry decreases assets A debit entry increases drawings A debit entry increases profit
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A credit entry increases liabilities A credit entry increases capital A debit entry decreases profit
Question 3
Question
What is the correct double-entry for the purchase of goods on credit?
Answer
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Dr Trade payables Cr Purchases
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Dr Purchases Cr Trade payables
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Dr Purchases Cr Trade receivables
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Dr Inventory Cr Trade payables
Question 4
Question
Sally buys petrol for her car on a weekly basis. Which of the following methods of payment is she most likely to use to pay for her petrol?
Answer
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Debit card
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Standing order
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Direct debit
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Bankers draft
Question 5
Question
Mary receives a cheque from her sister. What term describes Mary’s role in this transaction?
Answer
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Drawee
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Payer
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Payee
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Drawer
Question 6
Question
What is the main purpose of an accounting system in a business?
Answer
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To generate the business accounts
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To calculate the tax payable by a business
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To record, summarise and present information from documentation generated by business transactions
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To enable the owner to know if the business is trading profitably
Question 7
Question
A trade receivable is?
Answer
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A person owing money to the business in return for goods supplied
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A person to whom the business owes money in return for goods supplied
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A person to whom the business owes money which was lent to finance the trading operations of the business
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A person who has purchased goods from the business
Question 8
Question
Which of the following statements concerning a debit entry is incorrect?
Answer
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It records an increase in assets
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It records a business expense
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It records an increase in the liabilities of a business
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It records a decrease in the liabilities of a business
Question 9
Question
Which of the following statements concerning a credit entry is incorrect?
Answer
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Credit entries record increases in capital or liabilities
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Credit entries record decreases in assets
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Credit entries record increases in profits
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Credit entries record increase in expenses
Question 10
Question
A business receives an accountant’s bill for $500. Which of the following statements correctly shows the effect upon the accounting equation of the business, assuming the bill is
unpaid?
Answer
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Assets decrease, liabilities increase
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Capital decreases, liabilities increase
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Capital increases, liabilities decrease
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Assets decrease, capital decreases
Question 11
Question
Which of the following correctly explains the term ‘trade discount’?
Answer
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A reduction in the amount of an invoice which a customer will pay
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A price reduction which a supplier agrees with all customers in a particular trade
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A price reduction which a supplier agrees with an individual customer after an invoice has been sent at full price
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A reduction in the invoice price by a supplier because of the nature of the business with an individual customer
Question 12
Question
Which of the following correctly explains the term ‘debit note’?
Answer
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It is issued by a supplier to a customer to demand payment in full for goods supplied
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It is issued by a customer to a supplier to request a credit note
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It is issued by a customer when goods are delivered
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It is issued by a customer to a supplier to cancel an invoice received
Question 13
Question
Which of the following is not a method of payment by a customer?
Answer
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A cheque
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A cheque guarantee card
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A credit card
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A debit card
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