Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 11)
1
What type of entry is made when a company makes a cash payment?
Answer
(C)
Credit in the Cash column
2
Gemma Kenlar sells and delivers fruit and vegetables for cash and on credits. How many sales are recorded for less than or equal to 15?
Answer
(D)
3
3
When you receive income, what happens to the cash account?
Answer
(B)
The cash account will be debited.
4
What is the impact of an increase in the provision for doubtful debts on the Financial statements of the business?
Answer
(B)
Decreases the value of trade receivables.
5
When a company receives cash in advance for services to be performed, what account is credited?
Answer
(C)
Unearned Revenue
6
1.7 Which of the following is not one of the stages of updating a cash book?
Answer
(C)
Calculate the balance after all additions and deductions
7
A credit for $2400 ____. What is this entry?
Answer
(C)
The accrual brought down to the start of the next accounting year until the bakery receives the next commission. It is toward the account or income receivable will revert to current asset of the business.
8
What are the accounts which can be adjusted?
Answer
A
B
C
9
1.1 The following is the journal entry that reflects the cash discount on the purchase of inventory, what is the impact on the Discount Allowed account?
Answer
(D)
Credit the account with the amount of the cash discount
10
What type of account is 'Allowance for Doubtful Accounts'?
Answer
(C)
A contra-asset account.
11
1.15 A discount received on a payment to trade payable ____
Answer
(B)
Reduces the amount of cash paid by the business.
12
Which of these are common errors that can happen in accounting?
Answer
A
B
C
13
Which of the following actions can a business take to mitigate the risk of debts becoming irrecoverable?
Answer
A
C
14
Which journal is primarily used to record cash payments?
Answer
(C)
c) Cash payments journal
15
What account is debited when recording the sale of an irrecoverable debt?
Answer
(A)
Irrecoverable Debt Account
16
A credit for $400 ____.
Answer
(D)
To record three months of rent paid in advance.
17
The business receives money from the bank, what kind of transaction will happen to the assets?
Answer
(A)
Increase
18
A company is considering reducing its provision for doubtful debts. What is the impact on the income statement?
Answer
(C)
Increases Profit
19
The final balance in the cash book must be the same as that in the ____
Answer
(B)
Bank reconciliation statement
20
What is the correct double-entry to record payment of rent in cash?
Answer
(A)
Debit Rent Expense, Credit Cash
21
What information is typically found on an invoice?
Answer
A
B
C
D
22
Which accounts will have credit balances?
Answer
A
B
C
23
What is the impact of a cash payment on the accounting equation?
Answer
(C)
Decreases assets and decreases equity
24
Which of the following would NOT be recorded in a general journal?
Answer
(C)
c) A sale of inventory for cash.
25
Which of the following accounts are debited in the sales journal?
Answer
A
C
26
1.4 When the bank's balance is lower than the business' cash book balance, what kind of entry is the bank likely to make?
Answer
(A)
Credit entry
27
What does a trial balance do?
Answer
(D)
All the above.
28
What is the purpose of debit entries on a trade receivable account?
Answer
(A)
To increase the amount owed to the business by customers.
29
What do credit balances represent?
Answer
(B)
Increase in liabilities
30
For payments received for sales on credit, which of the following is correct?
Answer
(A)
Debit the cash account with cash received or debit the bank account when the payment is received by cheque or bank transfer.
31
What should the total of debits and credits always be?
Answer
(A)
a) Always the same
32
11. A business has completed the following transactions in September: Bank loan received: $13,800. What is the impact to the account?
Answer
(C)
Both 1 and 2.
33
Which of the following increases drawings?
Answer
(A)
Withdrawal of cash by the owner for personal use
34
For the transaction 'The transaction capital was received', how does it impact the accounting equation?
Answer
(A)
Impact 1: capital increased; Impact 2: cash in bank increased
35
Which document is proof that a payment has been made?
Answer
(C)
Receipt
36
Which financial statement reports a company's financial performance over a period of time?
Answer
(C)
Income Statement
37
What is the effect of writing off a bad debt?
Answer
(B)
Decrease in assets
38
Which of the following are examples of liabilities?
Answer
A
B
39
What is the purpose of a trial balance?
Answer
(B)
To verify the accuracy of debits and credits in the general ledger.
40
When might a customer receive a debit note?
Answer
(B)
When the supplier undercharged them.
41
What document is provided as proof of payment?
Answer
(D)
Receipt
42
In what order should transactions be recorded in the general journal?
Answer
(A)
a) Chronological order.
43
7. A sale of goods on credit will have which effect?
Answer
(D)
Both 2 and 3
44
For a direct debit from our bank current account to pay a trade payable
Answer
(A)
Debit trade payable account. Impact: trade payable are decreased.
45
To write off an irrecoverable debt, Bring the trade receivable balance into the account, you must ____.
Answer
(A)
Debit the lack of income
46
What account is debited when writing off an uncollectible account?
Answer
(C)
Allowance for Doubtful Accounts.
47
What type of account is 'provision for doubtful debts'?
Answer
(C)
Contra-asset account
48
A 3-column cash book has these columns?
Answer
A
B
D
49
Which of the following is an example of an accrued expense?
Answer
(C)
Interest payable.
50
Which of the following is an example of a prepaid expense?
