1.     ........... is a general term for activities of the business.

capital

purchases

sales

transactions

2.     ............ is an amount received from creditors when paying them within required time.

cash discount

discount allowed

discount received

trade discount

3.     ............. accounts are individual accounts of debtors and creditors.

impersonal

nominal

personal

real

4.     ............. accounts cover asset accounts such as premises, motor vehicles, etc.

impersonal

nominal

personal

real

5.     ............. accounts cover various income and expense accounts, e.g. sales, wages, etc.

Impersonal

nominal

Personal

Real

6.     ............. means a charge paid by the firm to carrier for delivering goods to customers: Cost of distribution

– (Đ)✅:  carriage outwards

carriage inwards

returns inwards

returns outwards

7.     .............. is used to record Cash & Bank accounts

Cash book

General Ledger

Private Ledger

Sales Ledger

8.     .............. is a direct means of transferring money through the bank systems, which is initiated by the paying party.

cheque

credit transfer

direct debit

standing order

9.     .............. is direct transfer between bank accounts, involving fixed accounts at regular intervals.

Cheque

credit transfer

direct debit

standing order

10.  .............. Ledger is used to record creditor accounts

General

Private

Purchases

Sales

11.  .............. Ledger is used to record debtor accounts

General

Private

Purchases

Sales

12.  ................. is indicated in the invoice and recorded in the accounts.

– (Đ)✅:  Cash discount

Discount allowed

Discount received

Trade discount

13.  .................. account is used for regular banking and withdrawal of money.

cheque

credit transfer

current

deposit

14.  ‘Balance sheet’ is .........

a type of financial statement

record of transactions by categories

resources or items owned by the business

the amount of the owner’s stake in the business.

15.  ‘Capital’ is ................

a type of financial statement

record of transactions by categories

resources or items owned by the business

the amount of the owner’s stake in the business.

16.  4 types of personal accounts include capital, supplier, customer, and ..........

bank

cash

drawings

sales

17.  A .... is someone who owes you money after you sell him/ her on credit.

creditor

debtor

liabilities

loan

18.  A ....... is someone to whom you owe money after you buy on credit.

Creditor

Debtor

Liabilities

Loan

19.  A general term for amounts owing to persons other than the owner is ......

creditor

liabilities

loan

reditordebtor

20.  According to double-entry rules, if a liability decreases, .......

Liability account will be credited

Liability account will be debited

Liability account will be debited and credited

Liability account will be debited or credited

21.  According to double-entry rules, if an asset increases, .......

asset account will be credited

asset account will be debited

asset account will be debited and credited

asset account will be debited or credited

22.  Book-keeping entries relating to Cash Purchases are:

credit purchases account & credit Cash/ Bank account

credit purchases account & debit Cash/ Bank account

debit purchases account & credit Cash/ Bank account

debit purchases account & debit Cash/ Bank account

23.  Book-keeping entries relating to Cash Sales are:

credit Cash/ Bank account & credit Sales account

credit Cash/ Bank account & debit Sales account

debit Cash/ Bank account & credit Sales account

debit Cash/ Bank account & debit Sales account

24.  Book-keeping entries relating to Credit Purchase are:

credit purchases account & credit supplier’s (creditor’s) account

credit purchases account & debit supplier’s (creditor’s) account

debit purchases account & credit supplier’s (creditor’s) account

debit purchases account & debit supplier’s (creditor’s) account

25.  Book-keeping entries relating to Credit Sales are:

credit customer’s (debtor’s) account & credit sales account

credit customer’s (debtor’s) account & debit sales account

debit customer’s (debtor’s) account & credit sales account

debit customer’s (debtor’s) account & debit sales account

26.  Book-keeping entries relating to Payment received from debtor are:

credit bank/ cash account & credit debtor’s account

credit bank/ cash account & debit debtor’s account

debit bank/ cash account & credit debtor’s account

debit bank/ cash account & debit debtor’s account

27.  Book-keeping entries relating to Payment to creditor are:

credit creditor’s account & credit bank/ cash account

credit creditor’s account & debit bank/ cash account

debit creditor’s account & credit bank/ cash account

debit creditor’s account & debit bank/ cash account

28.  Book-keeping entries relating to Purchases Returns are:

credit Returns Inwards account & debit debtor’s account

credit Returns Outwards account & debit supplier’s (creditor’s) account

debit Returns Inwards account & credit debtor’s account

debit Returns Outwards account & credit supplier’s (creditor’s) account

29.  Book-keeping entries relating to Sales Returns are:

credit Returns Inwards account & debit debtor’s account

credit Returns Outwards account & debit supplier’s (creditor’s) account

debit Returns Inwards account & credit debtor’s account

debit Returns Outwards account & credit supplier’s (creditor’s) account

30.  Calculate Current Liabilities from the following details: Fixed assets: £53,000; Current assets: £28,500; Capital: £ 66,500; Long-term liabilities: £8,300.

– (Đ)✅:  £6,700

£23,300

£74,800

£81,500

31.  Calculate Gross Profit from the following details: Cost of goods sold: £15,200; Sales £23,700, Returns Inwards £1,420.

– (Đ)✅:  £7,080

£22,280

£8,500

£9,920

32.  Calculate Net Profit from the following details: Gross profit: £12,000; Rent payable: £1,500; Rent receivable: £420; Wages: £1,210; Insurance: £300; office expenses: £420; travelling expenses: £270.

– (Đ)✅:  £8,720

£7,880

£8,270

£8,780

33.  Calculate Net Profit from the following details: Gross profit: £12,400; Expenses £7,550, Commission £420.

– (Đ)✅:  £5,270

£4,430

£4,850

£6,370

34.  Calculate Net profit from the following details: Total of Capital at the end of period: £62,000; capital at the beginning of period: £48,000; Drawings: £2,420

– (Đ)✅:  £16,420

£11,580

£14,000

£40,600

35.  Calculate the Fixed Assets from the following details: Total of assets: £73,600; Stock £2,200, Debtors: £2,800, Cash: £ 3,240, Bank: £21,300

– (Đ)✅:  £44,060

£40,060

£40,600

£44,600

36.  Calculate the total of Assets from the following details: Fixed assets: Furniture and fittings: £12,000; Motor vehicle: £7,000 - Current assets: Stock £2,200, Debtors: £1,850, Cash: £ 3,410, Bank: £13,000

– (Đ)✅:  £39,460

£19,000

£20,460

£32,460

37.  From Sales Day book, detail is transferred monthly to Sales account in ...........

– (Đ)✅:  General Ledger

Cash book

Purchases Ledger

Sales Ledger

38.  From Sales Day book, detail is transferred promptly to .......... account in Sales Ledger

– (Đ)✅:  Debtor’s

Cash/ Bank

Creditor’s

Sales

39.  From the transaction below: ‘A Smith owed the business £1,500 for the goods sold to him on May 10, Year 2. The terms of sale allow for 3% cash discount for payment within 7 days. On May 15, Year 2, A Smith paid his debt by cheque.’What entries in the cash book are necessary for this transaction?

Cr Discount allowed £45 & Cr Bank £1,455

Cr Discount allowed £45 & Dr Bank £1,455

Dr Discount allowed £45 & Cr Bank £1,455

Dr Discount allowed £45 & Dr Bank £1,455

40.  From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’. How much cash discount was given to him?

£1,746

£1,756

£1,800

£54

41.  From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’. How much did A Smith actually pay?

£1,746

£1,756

£1,800

£54

42.  From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’.What kind of discount is it?

Cash discount

discount allowed

discount received

Trade discount

43.  From the transaction below: ‘Credit sale to P Starkey at list price of £360, subject to 15% trade discount’. How much discount will be given to P Starkey?

– (Đ)✅:  £54

£306

£316

£360

44.  From the transaction below: ‘Credit sale to P Starkey at list price of £360, subject to 15% trade discount’. How much will be recorded into accounts?

– (Đ)✅:  £306

£316

£360

£54

45.  From the transaction below: ‘The business owed L Turner £2,000 for the goods bought from May 20th Year 2. By paying by cheque within a specified time (May 23, Year 2), the business can receive a cash discount of 5%’. What entries in the cash book are necessary for this transaction?

Cr Discount received £100 & Cr Bank £1,900

Cr Discount received £100 & Dr Bank £1,900

Dr Discount received £100 & Cr Bank £1,900

Dr Discount received £100 & Dr Bank £1,900

46.  From the transaction below: ‘You owed A John, a creditor £2,000 for the goods bought from him & you paid your debt within required time; hence 3% cash discount was received’. How much cash discount did you received?

£1,940

£1,960

£2,000

£60

47.  From the transaction below: ‘You owed A John, a creditor £2,000 for the goods bought from him & You paid your debt within required time; hence 3% cash discount was received’. How much did you have to pay?

£1,940

£1,960

£2,000

£60

48.  From the transaction: ‘Credit purchase from A John at list price of £880, subject to 20% trade discount’. How much discount will the business receive?

– (Đ)✅:  £176

£167

£704

£880

49.  From the transaction: ‘Credit purchase from A John at list price of £880, subject to 20% trade discount’. How much will the business record into Day book?

– (Đ)✅:  £704

£176

£740

£880

50.  From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount; then return goods to S Letts at list price £40’. How much will the business finally owe S Letts?

– (Đ)✅:  £189

£210

£36

£4

51.  From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount; then return goods to S Letts at list price £40’. How much will the business record in Return Outwards account?

– (Đ)✅:  £36

£210

£4

£40

52.  From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount’. In what Day book and what accounts will it be recorded & How much will it be recorded?

– (Đ)✅:  Purchases Day book; Dr Purchases £225 ; Cr S Letts £225

Purchases Day book; Dr Purchases £250 ; Cr S Letts £250

Sales Day book; Dr S Letts £225 ; Cr Sales £225

Sales Day book; Dr S Letts £250 ; Cr Sales £250

53.  From the transaction: ‘K Devine returns to us goods with a list price of £150. No discount was previously made.’ In what accounts will it be recorded?

– (Đ)✅:  Dr Returns Inwards £150 & Cr K Devine £150

Cr K Devine £150 & Dr Returns Outwards £150

Cr Returns Inwards £150 & Dr K Devine £150

Dr K Devine £150 & Cr Returns Outwards £150

54.  From the transaction: ‘Return goods to S Letts at list price £40’. In what Day book and what accounts will it be recorded?

– (Đ)✅:  Returns Outwards Day book; Dr S Letts a/c & Cr Returns Outwards a/c

Returns Inwards Day book; Dr Purchases a/c & Cr S Letts

Returns Inwards Day book; Dr Returns Inwards a/c & Cr S Letts

Returns Outwards Day book; Dr Returns Outwards a/c & Cr S Letts a/c

55.  From the transaction: ‘S Smart –a debtor returned goods to the business’. In what accounts & what ledger will it be recorded?

– (Đ)✅:  Dr Returns Inwards a/c in General Ledger & Cr S Smart a/c in Sales Ledger

Cr Returns Outwards a/c in General Ledger & Dr S Smart a/c in Sales Ledger

Dr Returns Inwards a/c in General Ledger & Cr S Smart a/c in Purchases Ledger

Dr Returns Outwards a/c in General Ledger & Cr S Smart a/c in Sales Ledger

56.  How is ‘Carriage inwards’ treated in final accounts?

Carriage inwards is added into expense column

Carriage inwards is added to the amount of Purchases

Carriage inwards is deducted in amount of Sales

Carriage inwards is deducted in the amount of Purchases

57.  How is ‘Carriage Outwards’ treated in final accounts?

– (Đ)✅:  Carriage inwards is added into expense column

Carriage inwards is added to the amount of Purchases

Carriage inwards is deducted in amount of Sales

Carriage inwards is deducted in the amount of Purchases

58.  How is ‘Carriage Outwards’ treated in final accounts?

– (Đ)✅:  Carriage outwards is added into expense column

Carriage outwards is added to the amount of Purchases

Carriage outwards is deducted in amount of Sales

Carriage outwards is deducted in the amount of Purchases

59.  In the accounting equation, ........

The two sides will always be equal to one another

The two sides will never be equal to one another

Total of assets is always bigger than total of capital and liabilities

Total of assets is always smaller than total of capital and liabilities

60.  In the following transaction: ‘The owner puts a further amount into the business by cheque’, which account is debited and which account is credited?

debit bank account & credit capital account

debit bank account & credit the owner’s account

debit the owner’s account & credit bank account

debit the owner’s account & credit capital account

61.  In the transaction ‘wages of £40 are paid in cash’, which entries are correct?

Cr wages account £40 & Cr Cash account £40

Cr wages account £40 & Dr Cash account £40

Dr wages account £40 & Cr Cash account £40

Dr wages account £40 & Dr Cash account £40

62.  In the transaction below: ‘You owed A John, a creditor for the goods bought from him & you paid your debt within required time; hence A John gave you cash discount’. What kind of discount is it?

Cash discount

discount allowed

discount received

Trade discount

63.  In the transaction, ‘Goods sold for £210 on credit to T Smith’, which entries are correct?

Dr Bank £210 & Cr Sales £210

Dr Sales £210 & Cr Bank £210

Dr Sales £210 & Cr T Smith £210

Dr T Smith £210 & Cr Sales £210

64.  In the transaction: ‘Cash sale £1,410, in which £410 was received in cash’. What entries in the Cash book are done?

Cr Cash £410 & Cr Bank £1,000

Dr Cash £1,410

Dr Cash £410

Dr Cash £410 & Dr Bank £1,000

65.  In the transaction: ‘Paid £442 in cash to A Dobbs in settlement of a debt of £450’. What entries in the Cash book are done?

Cr Cash £442

Cr Discount allowed £8 & Cr Cash £442

Cr Discount received £8 & Cr Cash £442

Dr Cash £442

66.  In the transaction: ‘Received a cheque of £1,200 from A Smart in full settlement of debt of £1,212’. What entries in the Cash book are done?

Cr Discount received £12 & Dr Bank £1,200

Dr Bank £1,200

Dr Discount allowed £12 & Dr Bank £1,200

Dr Discount allowed £12 & Dr Bank £1,212

67.  In the transaction: ‘Withdrew £420 from bank to make cash in office’. What entries in the Cash book are done?Nếu vụ án không thuộc thẩm quyền của mình thì Tòa án phải trả hồ sơ cho Viện kiểm sát.

Cr Bank £420 & Cr Cash £420

Cr Bank £420 & Dr Cash £420

Dr Bank £420 & Cr Cash £420

Dr Bank £420 & Dr Cash £420

68.  The account ‘Bank’ has 3 transactions during July, Year 4, including 1 debit entries with £2,000 and 2 credit entries with £170 and £240. How much is the balance of this account at the end of July, Year 4?

£1,590 Cr

£1,590 Dr

£1,690 Cr

£1,690 Dr

69.  The account ‘Bank’ has 3 transactions during July, Year 4, including 1 debit entries with £5,000 and 2 credit entries with £170 and £240. How much is the balance of this account at the end of July, Year 4?

– (Đ)✅:  £1,590 Dr

£1,590 Cr

£1,690 Cr

£1,690 Dr

70.  The account ‘T Dove’ has 4 transactions during May, Year 4, including 2 debit entries with £150 & £80 and 2 credit entries with £170 and £35. How much is the balance of this account at the end of May, Year 4?

£25 Cr

£25 Dr

£35 Cr

£35 Dr

71.  The account ‘T Smith’ has 4 transactions during July, Year 4, including 2 debit entries with £50 & £80 and 2 credit entries with £170 and £230. How much is the balance of this account at the end of July, Year 4?

£170 Cr

£170 Dr

£270 Cr

£270 Dr

72.  The capital equation is:

Assets equals capital and liabilities

Assets less liabilities equals capital

Capital equals assets and liablities

Liabilities equals assets less capital

73.  The capital equation is:

– (Đ)✅:  Assets less liabilities equals capital

Assets equals capital and liabilities

Capital equals assets less liablities

Liabilities equals assets less capital

74.  The difference between current account and deposit account is that current account is used for ............ banking and withdrawal of money, and in deposit account withdrawals will be .............

infrequent/ infrequent

infrequent/ Regular

regular/ infrequent

regular/ regular

75.  The following detail appears in the Purchases Day Book: ‘T Smith56/637£656’To what accounts & Ledgers will this detail be transferred?

– (Đ)✅:  T Smith a/c in Purchases Ledger; Purchases a/c in General Ledger

T Smith a/c and Purchases a/c in General Ledger

T Smith a/c and Purchases a/c in Purchases Ledger

T Smith a/c in General Ledger; Purchases a/c in Purchases Ledger

76.  The formula for Cost of goods sold is:

– (Đ)✅:  Opening stock+Purchases+Carriage inwards-Returns outwards-Closing stock

Opening stock+Purchases+Carriage inwards+Returns outwards –Closing stock

Opening stock+Purchases-Carriage inwards-Returns outwards –Closing stock

Opening stock+Purchases-Carriage inwards-Returns outwards –Closing stock

77.  The invoice gives details of .................

Both Trade discount and Cash discount

Cash discount

Discount allowed

Trade discount

78.  The main difference between ‘Expenses’ and ‘Drawings’ is that.......

‘Drawings’ is the costs of running a business and ‘Expenses’ is withdrawals from a business by the owner for his private use

‘Expenses’ is the costs of running a business and ‘Drawings’ is withdrawals from a business by the owner for both his private use and business’ use

‘Expenses’ is the costs of running a business and ‘Drawings’ is withdrawals from a business by the owner for his private use

‘Expenses’ is the costs of running a business and ‘Drawings’ is withdrawals from a business by the owner for the business’ use

79.  The term ‘account’ means .....

a record of transactions by category (purchases, for example), or by person or organization.

person (or business) to whom money is owed by the business

person (or business) who owes money for goods or services supplied by the business

taking an ownership of an asset now, but paying for it at later stage

80.  The term ‘Drawings’ means

withdrawals from a business by the owner for the business’ private use: in cash or goods/ services

withdrawals from a business by the owner for the business’ use: in cash or goods/ services

withdrawals from a business by the owner for the owner’s private use: in cash or goods/ services

withdrawals from a business by the owner for the use of both the owner and the business: in cash or goods/ services

81.  The term ‘Transaction on credit’ means ........

a record of transactions by category (purchases, for example), or by person or organization.

person (or business) to whom money is owed by the business

person (or business) who owes money for goods or services supplied by the business

taking an ownership of an asset now, but paying for it at later stage

82.  The total of discount received column in the cash book will be transferred to ............. Ledger.

General

Private

Purchases

Sales

83.  The word ......... in the heading of the balance sheet is linked to the idea of the snapshot photograph.

at

equal

month

with

84.  T-type Ledger accounts has the following format:

one-sided account only with credit side

One-sided account only with debit side

two-sided account with credit side on the left and debit side on the right

two-sided account with debit side on the left and credit side on the right

85.  When you received money from debtors who pay their debts within required time, the discount you give him is called .............

cash discount

discount allowed

discount received

trade discount

86.  Where balances are carried forward from one page to the next, ‘balance .........’ would appear at the bottom of one page and ‘balance .......’ at the top of the next page.

b/d – c/d

b/f – c/f

c/d – b/d

c/f – b/f

87.  Which account below is close off to Profit and Loss account?

– (Đ)✅:  Carriage Outwards

Carriage Inwards

Purchases

Sales

88.  Which account below is close off to Trading account?

– (Đ)✅:  Carriage Inwards

Carriage Outwards

Rent

Salaries

89.  Which item below is not an asset?

Cash

Creditor

Debtor

Motor vehicle

90.  Which item below is not an expense?

insurance

rent payable

rent receivable

wages, salaries

91.  You are presented with the following data: Assets 13,970 Capital 2,934 Liabilities 11,576 What comment would you make?

Capital is correct

the equation is correct

the two sides are equal

the two sides are not equal. One figure must be incorrect

92.  You are presented with the following data:Assets 13,970Capital 2,394Liabilities 11,576What comment would you make?

– (Đ)✅:  the two sides are not equal. One figure must be incorrect

Capital is correct

the equation is correct

the two sides are equal

93.  You can calculate ........... profit in ‘Profit and Loss account’.

– (Đ)✅:  Net

Expense

Gross

Income

94.  You can calculate ........... profit in ‘Trading account’.

– (Đ)✅:  Gross

Expense

Income

Net