228 câu hỏi trắc nghiệm có đáp án tài chính và kế toán quản trị

228 Câu h ỏi tr ắc nghi ệm có đá p án Tài chính và k ế
toán qu ản tr ị
228 Test Bank for Financial and Management
Accounting An Introduction 4th Edition Pauline
Weetman Multiple Choice Questions
Which of the following reflects the effects on the accounting
equation of a payment to trade payables (creditors)?
1.
2.
3.
4.

A) assets decrease: liabilities decrease
B) assets decrease: ownership interest decreases
C) assets increase: liabilities decrease
D) assets decrease: ownership interest increases

Identify the account to which you would post the following
transaction recorded in the Cash Account: £2 000 paid to Dave
Nicholas as interest on a loan.
1.
2.
3.

A) Dave Nicholas’s Loan a/c
B) interest account
C) expense account

A business registered for Value Added Tax has to maintain a VAT
account, crediting it with the "output tax" and debiting it with the
"input tax" calculated at 17.5 / 117.5 of the transaction value. In

respect of the transaction listed below, identify whether you would
account for the VAT element by debiting or crediting the VAT
account or do neither: Cash sales
1.
2.
3.

A) credit
B) debit
C) neither

Identify whether the posting of the transaction to the account
named would increase or reduce the balance in that account:
Payments to buy goods for sale. (Purchases account)
1.
2.

A) increase
B) reduce

If the net assets of a business totalled £540 000 and its liabilities
totalled £316 800, its total assets on that date would amount to:
1.
2.
3.

A) £223 200
B) £856 800
C) £633 600

4.

D) £540 000

A trial balance will not reveal the following error:
1.
2.

A) a credit sale of £500 to Ashley debited to Ashley account only
B) a credit sale of £500 made to Ashley, posted as debit sale account £500
and credit Ashley account £500
3. C) a cash sale of £500 posted to sales account only
4. D) a cash sale of £500 posted as a credit to the sales account of £500, and
a credit to cash account of £500

For the purpose of establishing the accuracy of the individual
personal ledger balances, a business maintains, on a
memorandum basis, a Sales Ledger Control account (S.L.Cont)
and a Purchases Ledger Control account (P.L.Cont). Identify the
account and its side in which you will enter Return outwards
during the month: S.L.Cont. P.L.Cont. Neither; Dr Cr Dr Cr a b c d
e
1.
2.
3.
4.
5.

A) b

B) c
C) a
D) d
E) e

Identify whether the account stated below would represent an
Asset, Liability, Income or Expenditure: Buildings account
1.
2.
3.
4.

A) liability
B) income
C) expenditure
D) asset

Which of the following events will an accountant normally not
record?
1.
2.
3.

A) paying a bill that has been owing for 2 years
B) receiving an invoice for goods purchased, but not paying for them yet
C) providing a service to a customer to be paid for in the next accounting
period
4. D) agreeing to hire a new employee who will start work in the next
accounting period

A sale of £7 800 to Peter Blowes has been posted to Paul
Blowes. To correct this the journal entry should require which of
the following:
1.
2.

A) debit Sales account and credit Paul Blowes with £15 600
B) debit Sales account and credit Paul Blowes account with £7 800


3.
4.

C) debit Peter Blowes account and credit Sales account with £7 800
D) debit Peter Blowes account and credit Paul Blowes account with £7 800

A business registered for Value Added Tax has to maintain a VAT
account, crediting it with the "output tax" and debiting it with the
"input tax" calculated at 17.5 / 117.5 of the transaction value. In
respect of the transaction listed below, identify whether you would
account for the VAT element by debiting or crediting the VAT
account or do neither:Acquisition of motor vehicles
1.
2.
3.

A)neither
B)debit
C) credit

Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Stationery account
1.
2.

A) credit
B) debit

The Cashier has recorded the following transaction in a Cash
Book, entering the receipts on the debit side and the payments on
the credit side. Identify which side of the named account would be
posted by the Bookkeeper. Advertising account : £240 paid for
advertising the availability of mobile phones
1.
2.

A) debit
B) credit

Before inserting a closing balance, accounts representing assets
or expenses are likely to have:
1.
2.
3.
4.

A)an equal amount of debit and credit entries
B)only credit entries
C)more debit entries than credit entries

D)more credit entries than debit entries

Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Bank Loan a/c
1.
2.

A) credit
B) debit

If a business commenced the day with £14 200, paid out £58 900
during the day and has £22 900 by the end of the day, it should
have received during the day:


1.
2.
3.
4.

A) £1 400
B) £67 600
C) £50 200
D) £21 800

A machinery acquired at a cost of £225 000, expected to be in
use for five years, with no salvage value, is to be depreciated
equally over its useful life. Annual depreciation then is:
1.

2.
3.
4.

A) £22 500
B) £45 000
C) £112 500
D) £80 000

Which of the following reflects the effect on the accounting
equation of a purchase of an item of plant and equipment, for
cash?
1.
2.
3.
4.

A) assets increase: ownership interest decreases
B) assets unchanged: ownership interest unchanged
C) assets decrease: ownership interest increases
D) assets decrease: ownership interest unchanged

The Cashier has recorded the following transaction in a Cash
Book, entering the receipts on the debit side and the payments on
the credit side. Identify which side of the named account would be
posted by the Bookkeeper. Interest account : £2 000 paid as
interest on Dave's Loan
1.
2.

A) credit
B) debit

M Biggs bought several lots of inventory (stock) throughout a
period for the following amounts £1 100, £2 200, £3 300, £4 400.
He made sales on credit throughout this period of £1 100, £2 200,
£3 300, £4 400. He sells inventory (stock) at cost plus 25%. His
closing inventory (stock) at the end of the period is valued at:
1.
2.
3.
4.

A) 2 200
B) 3 300
C) zero
D) 4 400

Which of the following errors would have caused a difference in
the trial balance?
1.

A)recording a sale of £30 000 as £3 000 in the Cash Book and £3 000 in
the Sales Account


2.

B)posting payment of £21 000 for stationery as £12 000 to the Stationery
account

3. C)not accounting for £15 000 paid for purchasing goods for sale
4. D)posting to Motor vehicles account £600 paid for servicing vehicles

Identify whether the posting of the transaction to the account
named would increase or reduce the balance in that account:
Receipt of a Loan from Kingsley Perera. (Perera's Loan account)
1.
2.

A) increase
B) reduce

Identify whether the account stated below would represent an
Asset, Liability, Income or Expenditure: Purchases a/c
1.
2.
3.
4.

A) asset
B) expenditure
C) liability
D) income

Identify the account to which you would post the following
transactions recorded in the Cash Account:£2 500 paid for a steel
cabinet to securely lock up the books of account.
1.
2.
3.

A) furniture account
B) accounts safe a/c
C) steel cabinet a/c

If a business pays a cheque for stationery, the bookkeeping
entries are:
1.
2.
3.
4.

A) Debit Purchases Credit Bank
B) Debit Bank Credit Stationery
C) Debit Stationery Credit Bank
D) Debit inventory (stock) Credit Bank

Identify the account to which you would post the following
transaction recorded in the Cash Account: £4 000 paid to Ricky
Nelson, the landlord, as rent for the premises used for business
purposes.
1.
2.
3.

A) Ricky Nelson a/c
B) landlord's account
C) rent account

Identify whether the account stated below would represent an

Asset, Liability, Income or Expenditure: Bank Loan a/c
1.
2.

A) income
B) asset


3.
4.

C) expenditure
D) liability

Identify the account to which you would post the following
transaction recorded in the Cash Account:£240 paid for
advertising the availability of mobile phones for sale.
1.
2.
3.

A) publicity account
B) advertising a/c
C) expenses account

The effect of a transaction was that it reduced both the assets and
the liabilities of a business by £100 000. Which of the following is
that transaction likely to be:
1.
2.

3.
4.

A) introduction of additional capital by the owner
B) repayment of a loan
C) disposal of an asset
D) sale of goods

Identify the year-end balance that would be brought down in the
following account on 31 December 20x6, taking into account the
stated transaction: Ruth Jones' Loan account: A loan of £60 000
was obtained from Ruth on 1 January 20x5, on an agreement that
it will be settled in six annual instalments of £10 000 each
commencing from 31 December 20x5. The agreement is being
complied with.
1.
2.
3.

A) £40 000
B) £60 000
C) £50 000

Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Machinery a/c
1.
2.

A) credit

B) debit

If a trial balance, extracted from the double entry system of a sole
trader, shows that total debits equals total credits then:
1.
2.

A) the books are correct
B) no errors will have been made in posting the transactions of the
business
3. C) the business is profitable
4. D) an equal debit for every credit will have been posted and the accounts
correctly added

Every entry in a ledger should have:


1.
2.
3.
4.

A) date and description
B) amount
C) date, description and amount
D) description and amount

The source documents for entries made in the Return Outwards
Journal are:
1.

2.
3.
4.

A) copies of Credit Notes issued to customers
B) Credit Notes issued by suppliers
C) purchase invoices
D) copies of sales invoices

A 'T' account is:
1.
2.
3.

A) an abbreviation for the telephone account
B) an account for all customers whose names begin with the letter T
C) the ledger account found between the Sugar account and the Milk
account
4. D) a simple representation of a ledger account, forming the letter 'T'

Identify whether the account stated below would represent an
Asset, Liability, Income or Expenditure: Sales account
1.
2.
3.
4.

A) asset
B) income
C) liability

D) expenditure

Jayantha commenced business on 1 January 20x6 with a capital
in cash of £10 000. During the year ending on 31 December 20x6
he paid £12 000 for furniture, £92 400 for purchasing goods for
sale and £31 450 for various expenses. He received £139 250 by
sale of goods. Identify Jayantha’s profit for the year to 31
December 2001 in the following situation: Unsold goods
remaining in hand on 31 December 20x6 had cost £24 550 and
Jayantha wishes to write off the cost of his furniture equally over
six years.
1.
2.
3.

A) £37 950
B) £38 950
C) £71 400

For the purpose of establishing the accuracy of the individual
personal ledger balances, a business maintains, on a
memorandum basis, a Sales Ledger Control account (S.L.Cont)
and a Purchases Ledger Control account (P.L.Cont). Identify the
account and its side in which you will enter the dishonouring


('bouncing') of a cheque received from a customer S.L.Cont.
P.L.Cont. Neither; Dr Cr Dr Cr a b c d e
1.
2.

3.
4.
5.

A) d
B) c
C)e
D) a
E) b

The total of credit sales found within a sales ledger control
account comes from:
1.
2.
3.
4.

A) the sales day book
B) the sales ledger
C) the trial balance
D) the cash book

Having placed in a Suspense account the difference in the trial
balance, it is found that the difference arose because a pre-paid
rent of £12 000 has been brought down as a credit balance in the
Rent account. To correct this error which of the following entries
should the journal require:
1.
2.
3.

4.

A) Debit Suspense account and credit Rent account with £24 000
B) Debit Rent account and credit Suspense account with £24 000
C) Debit Rent account and credit Suspense account with £12 000
D) Debit Rent account with £24 000

Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Salaries account
1.
2.

A) credit
B) debit

Which of the following is the correct terminology for the right hand
side of a ledger account?
1.
2.
3.
4.

A) positive
B) debit
C)credit
D) negative

Which of the following statements is correct? A trial balance:
1.

2.
3.
4.

A) lists the balances in all the accounts maintained on a double entry basis
B) is prepared by a business on the last day of its accounting period
C) proves the accuracy of the accounting records
D) lists all entries made for accounting for business transactions


Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Shop fittings a/c
1.
2.

A) debit
B) credit

Jayantha commenced business on 1 January 20x6 with a capital
in cash of £10 000. During the year ending on 31 December 20x6
he paid £12 000 for furniture, £92 400 for purchasing goods for
sale and £31 450 for various expenses. He received £139 250 by
sale of goods. Identify Jayantha’s capital as at 31 December 2001
in the following situation: Jayantha had sold out all goods
purchased during the year and wishes to write off a tenth of the
cost of furniture as depreciation.
1.
2.
3.

A) £24 200
B) £10 000
C) £24 400

Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Cash account
1.
2.

A) debit
B) credit

When preparing a bank reconciliation statement, the balance as
shown in the bank statement is reconciled with:
1.
2.
3.
4.

A) the bank's account in the business's payables (creditors)' ledger
B) the bank balance as shown in the previous balance sheet
C) the bank balance as shown in the bank’s ledger
D) the bank balance as shown in the business's cash book

Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Advertising a/c
1.

2.

A) credit
B) debit

Which of the following source books (books of prime entry) will
not be required in a 'cash' business?
1.
2.
3.

A) Sales Ledger
B) Nominal Ledger
C) Petty Cash Account


4.

D) Bank Account

Identify the year-end balance that would be brought down in the
following account on 31 December 20x6, taking into account the
stated transaction: Office Equipment account: The balance in the
account on 1 December 20x6 was £218 400. In December four
personal computers were bought for staff use, paying £4 500 for
each unit.
1.
2.
3.

A) £200 400
B) £236 400
C) £218 400

228 Free Test Bank for Financial and Management
Accounting An Introduction 4th Edition Pauline
Weetman Multiple Choice Questions - Page 2
The accounting entries for recording £100 000 cash introduced by
the owner of a business are:
1.
2.
3.
4.

A) debit Cash account and Credit Owner’s account
B) credit Cash account and Debit Investment in business account
C) debit Cash account and Credit Capital account
D) debit Cash account and Credit Investments account

Which one of the following statements is incorrect? According to
the rules of double entry:
1.
2.

A) a credit entry increases the balance in income and liability account
B) a debit entry increases the balance in the assets and expenditure
accounts
3. C) a debit entry decreases or eliminates balances in income and liability
accounts
4. D) a debit entry increases the balance in the Capital account

Jayantha commenced business on 1 January 20x6 with a capital
in cash of £10 000. During the year ending on 31 December 20x6
he paid £12 000 for furniture, £92 400 for purchasing goods for
sale and £31 450 for various expenses. He received £139 250 by
sale of goods. Identify Jayantha’s profit for the year to 31
December 2001 in the following situation: Jayantha had sold out
all goods purchased during the year and wishes to write off a
tenth of the cost of furniture as depreciation.
1.
2.
3.

A) £14 400
B) £46 850
C) £14 200


A sales control account balance which agrees with the total of the
individual sales ledger balances tells us that:
1.
2.
3.
4.

A) it is unlikely that there is a double entry error in the sales ledger
B) no amounts arising from sales will appear in the bank reconciliation
C) it is unlikely that there is a double entry error in the ledgers as a whole
D) any remaining error in the double entry must lie in the purchase ledger

The Cashier has recorded the following transaction in a Cash
Book, entering the receipts on the debit side and the payments on
the credit side. Identify which side of the named account would be
posted by the Bookkeeper. Rent account : £4 000 paid to Ricky
Nelson as rent for business premises
1.
2.

A) credit
B) debit

The Cashier has recorded the following transaction in a Cash
Book, entering the receipts on the debit side and the payments on
the credit side. Identify which side of the named account would be
posted by the Bookkeeper. Stationery account : £53 paid for
various items of stationery
1.
2.

A) credit
B) debit

A business registered for Value Added Tax has to maintain a VAT
account, crediting it with the "output tax" and debiting it with the
"input tax" calculated at 17.5 / 117.5 of the transaction value. In
respect of the transaction listed below, identify whether you would
account for the VAT element by debiting or crediting the VAT
account or do neither: Cost of goods removed by the owner for
own use
1.

2.
3.

A) neither
B) debit
C) credit

For the purpose of establishing the accuracy of the individual
personal ledger balances, a business maintains, on a
memorandum basis, a Sales Ledger Control account (S.L.Cont)
and a Purchases Ledger Control account (P.L.Cont). Identify the
account and its side in which you will enter discount received from
suppliers for early settlement of bills: S.L.Cont. P.L.Cont. Neither
Dr Cr Dr Cr a b c d e
1.

A) b


2.
3.
4.
5.

B) a
C) e
D) c
E) d

Identify the account to which you would post the following

transaction recorded in the Cash Account: £360 received from
selling 12 units of mobile phone at £30 each
1.
2.
3.

A) earnings account
B) mobile phone a/c
C) sales account

Identify the account to which you would post the following
transaction recorded in the Cash Account: £40 paid to buy fuel for
a business vehicle
1.
2.
3.

A) Motor Vehicles a/c
B) vehicle running a/c
C) depreciation account

Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Capital account
1.
2.

A) debit
B) credit

The balance in the Capital account represents:
1.
2.
3.

A) the total of all assets of the business
B) total assets of the business minus its liabilities
C) cash and any other assets introduced by the owner at the
commencement of business
4. D) the amount of cash introduced by the owner at the commencement of
business

The Cashier has recorded the following transaction in a Cash
Book, entering the receipts on the debit side and the payments on
the credit side. Identify which side of the named account would be
posted by the Bookkeeper. Sales account : £360 received from
selling mobile phones
1.
2.

A) credit
B) debit

Having placed in a Suspense account the difference in the trial
balance, it is revealed that the difference arose because £12 500
received from customer Sally Peter has been posted to the debit


of her account. To correct this error which of the following should
the journal entry require:

1.
2.
3.
4.

A) debit Suspense account and credit Sally Peter’s account with £12 500
B) debit Sally Peter’s account and credit Cash account with £12 500
C) debit Suspense account and credit Sally Peter’s account with £25 000
D) debit Suspense account and credit Cash account with £12 500

The Cashier has recorded the following transaction in a Cash
Book, entering the receipts on the debit side and the payments on
the credit side. Identify which side of the named account would be
posted by the Bookkeeper. Vehicle Running account : £40 paid to
buy fuel for the business vehicle
1.
2.

A) debit
B) credit

Which of the following will disturb the balancing of the trial
balance?
1.
2.
3.

A) entering a wrong amount in a book of prime entry
B) posting to an asset account instead of an expenditure account
C) entering an acquisition of an asset, on credit terms, in the Purchases

Day Book
4. D) error in adding up a book of prime entry

Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Buildings account
1.
2.

A) credit
B) debit

A trial balance is a list of:
1.
2.
3.
4.

A) all the firm's assets and liabilities
B) all the firm's receivables (debtors) and trade payables (creditors)
C) all the debit and credit balances in the accounts
D) all the transactions in a ledger

Which one of the following statements is correct? A Trial balance:
1.
2.
3.

A) lists the balances in all the accounts on any day
B) will balance even if the bookkeeper forgets to post a payment

C) Lists the balances in the asset accounts and liability accounts on any
day
4. D) will reveal how profitable a business has been

If a sales invoice for £98 500 is not recorded in the Sales Day
Book, the effect of the error on the trial balance would be:


1.
2.
3.
4.

A) the trial balance will balance
B) total of the credit side will exceed that of the debit side by £98 500
C) total of the debit side will exceed that of the credit side by £98 500
D) total of the debit side will exceed that of the credit side by £197 000

A trader who commenced business on 1 January 20x5 reports the
balances, as at 31 December 20x5, in the Purchases account and
Sales account as £346 800 and £479 500 respectively. The total
of the balances in all other expense accounts is £112 200. Identify
the net profit in the first year of operation. The cost of goods
remaining unsold by the year end was £54 400.
1.
2.
3.

A) £24 600
B) £20 500

C) £74 900

Identify whether the posting of the transaction to the account
named would increase or reduce the balance in that account: Part
repayment of Kingsley Perera's Loan. (Perera's Loan account)
1.
2.

A) reduce
B) increase

A supermarket pays the wages of its staff by credit transfer from
its bank account. The entries in the supermarket's accounts
should be:
1.
2.
3.
4.

A) Debit: Bank, Credit: Wages
B) Debit: Wages, Credit: Staff creditors
C) Debit: Wages, Credit: Bank
D) Debit: Wages, Credit: Cash

Which of the following is not a book of prime entry?
1.
2.
3.
4.

A) the Ledger
B) Returns Inwards Day Book
C) the Petty Cash Book
D) cash book

Identify whether the account stated below would represent an
Asset, Liability, Income or Expenditure: Staff Loan account
1.
2.
3.
4.

A) asset
B) expenditure
C) liability
D) income

Identify, whether the posting of the transaction to the account
named would increase or reduce the balance in that account.


Refund of cash to a customer who returned goods sold to him.
(Sales account)
1.
2.

A) reduce
B) increase

Identify whether the account stated below would represent an

Asset, Liability, Income or Expenditure: Salaries account
1.
2.
3.
4.

A) expenditure
B) liability
C) asset
D) income

For the purpose of establishing the accuracy of the individual
personal ledger balances, a business maintains, on a
memorandum basis, a Sales Ledger Control account (S.L.Cont)
and a Purchases Ledger Control account (P.L.Cont). Identify the
account and its side in which you will enter an extra general
provision made for doubtful debts S.L.Cont. P.L.Cont. Neither Dr
Cr Dr Cr a b c d e
1.
2.
3.
4.
5.

A) a
B) e
C) c
D) d
E) b

Which of the following is not a credit balance?
1.
2.
3.
4.

A) Interest Received
B) Accumulated Depreciation of Fixtures and Fittings
C) Interest Paid
D) Sales Income

Identify whether the account stated below would represent an
Asset, Liability, Income or Expenditure: Van repairs account
1.
2.
3.
4.

A) Liability
B) Asset
C) Income
D) Expenditure

For the purpose of establishing the accuracy of the individual
personal ledger balances, a business maintains, on a
memorandum basis, a Sales Ledger Control account (S.L.Cont)
and a Purchases Ledger Control account (P.L.Cont). Identify the
account and its side in which you will enter Credit purchases

during the month: S.L.Cont. P.L.Cont. Neither Dr Cr Dr Cr a b c d
e
1.
2.
3.
4.
5.

A) d
B) b
C) c
D) a
E) e

In a trial balance produced at the end of a financial period,
opening inventory (stock) is usually found:
1.
2.
3.
4.

A) on the credit side
B) as a note after the trial balance has been produced
C) it is not shown at all
D) on the debit side

Which of the following is not a debit balance?
1.
2.
3.

4.

A) Taxation Paid
B) Wages and Salaries
C) Cost of Buildings
D) Capital Account

How would you define the “net assets” of a business?
1.
2.
3.
4.

A) Total assets + liabilities
B) Owner’s capital + Liabilities
C) Total assets - Owner’s Capital
D) Total assets - Liabilities

£52 875 (inclusive of Value Added Tax at 17.5%) paid for
acquiring machinery, and credited to the Cash account should be
posted to the debit of:
1.
2.
3.
4.

A) Machinery account
B) £40 000 to Machinery account and £12 875 to Value Added Tax account
C) £45 000 to Machinery account and £7 875 to Value Added Tax account
D) Value Added Tax account

Which one of the following statements is incorrect: Assets
acquired by a business for continuous use should be depreciated
in each year of its use so that:
1.
2.
3.
4.

A) a portion of the cost of the asset is matched with the income it generates
B) the assets may be reported at the amount each of them is worth
C) resources for replacing the asset are retained within the business
D) profits of the period and the position as at the end of each period is not
exaggerated


The Cashier has recorded the following transaction in a Cash
Book, entering the receipts on the debit side and the payments on
the credit side. Identify which side of the named account would be
posted by the Bookkeeper. Furniture account : £2 500 paid for a
steel cabinet
1.
2.

A) debit
B) credit

Identify whether the posting of the transaction to the account
named would increase or reduce the balance in that account:
Owner took some cash for his personal needs. (Capital account)

1.
2.

A) increase
B) reduce

Identify whether the posting of the transaction to the account
named would increase or reduce the balance in that account:Sale
of goods to customers. (Sales account)
1.
2.

A) reduce
B) increase

A business registered for Value Added Tax has to maintain a VAT
account, crediting it with the "output tax" and debiting it with the
"input tax" calculated at 17.5 / 117.5 of the transaction value. In
respect of the transaction listed below, identify whether you would
account for the VAT element by debiting or crediting the VAT
account or do neither: Expense (telephone)
1.
2.
3.

A) neither
B) credit
C) debit

The Cashier has recorded the following transaction in a Cash

Book, entering the receipts on the debit side and the payments on
the credit side. Identify which side of the named account would be
posted by the Bookkeeper. Motor vehicles account : £26 500 paid
for a Vovo Lorry for business use
1.
2.

A) debit
B) credit

For the purpose of establishing the accuracy of the individual
personal ledger balances, a business maintains, on a
memorandum basis, a Sales Ledger Control account (S.L.Cont)
and a Purchases Ledger Control account (P.L.Cont). Identify the


account and its side in which you will enter Credit sales during the
month: S.L.Cont. P.L.Cont. Neither Dr Cr Dr Cr a b c d e
1.
2.
3.
4.
5.

A) d
B) a
C) b
D) c
E) e

Which of the following economic actions reduces the amount of
ownership interest?
1.
2.
3.
4.

A) a payment of administration wages
B) a receipt of cash from receivables (debtors)
C) a receipt of a loan from the owner’s brother
D) a payment of cash to trade payables (creditors)

Which one of the following is an impersonal ledger?
1.
2.
3.
4.

A) receivables (debtors) ledger
B) sales ledger
C) purchases ledger
D) general ledger

A decrease in an asset will be recorded:
1.
2.
3.
4.

A) on the debit side of the ledger account for the asset

B) on the credit side of the ledger account for the asset
C) on both sides of the ledger account for the asset
D) nowhere in the ledger accounts

A business registered for Value Added Tax has to maintain a VAT
account, crediting it with the "output tax" and debiting it with the
"input tax" calculated at 17.5 / 117.5 of the transaction value. In
respect of the transaction listed below, identify whether you would
account for the VAT element by debiting or crediting the VAT
account or do neither: Credit sales
1.
2.
3.

A) debit
B) credit
C) neither

Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Van repairs account
1.
2.

A) debit
B) credit


The following are business transactions of a retailer: Purchased
150 items at cost £4 each for cash. Delivered 110 items to

customers for cash at a selling price of £6.50 per item. What is
the total profit of the retailer?
1.
2.
3.
4.

A) £875
B) £440
C) £115
D) £275

Identify the account to which you would post the following
transaction recorded in the Cash Account: £800 paid for 40 units
of mobile phones to be sold in the normal course of business
1.
2.
3.

A) inventory (stock) account
B) telephone account
C) purchases account

£30 000 being part repayment of a loan and £12 000 being
interest due on the loan have both been credited in the Cash
Account. The corresponding debit should be:
1.
2.
3.
4.

A) £42 000 in the relevant loan account
B) £30 000 in the loan account
C) £30 000 in the loan account and £12 000 in Interest on loan account
D) £18 000 in the loan account

For the purpose of establishing the accuracy of the individual
personal ledger balances, a business maintains, on a
memorandum basis, a Sales Ledger Control account (S.L.Cont)
and a Purchases Ledger Control account (P.L.Cont). Identify the
account and its side in which you will Cash purchases during the
month: S.L.Cont. P.L.Cont. Neither Dr Cr Dr Cr a b c d e
1.
2.
3.
4.
5.

A) e
B) b
C) a
D) c
E) d

228 Free Test Bank for Financial and Management
Accounting An Introduction 4th Edition Pauline
Weetman Multiple Choice Questions - Page 3
Birdland made a cash purchase of bird cages for re-sale. Which
of the following is correct?

1.
2.
3.
4.

A) there will be no effect on the total assets of the business
B) there will be an increase in the Total assets of the business
C) total assets of the business would increase
D) owner's Capital will decrease

For the purpose of establishing the accuracy of the individual
personal ledger balances, a business maintains, on a
memorandum basis, a Sales Ledger Control account (S.L.Cont)
and a Purchases Ledger Control account (P.L.Cont). Identify the
account and its side in which you will enter discount allowed to
customers for early settlement of bills: S.L.Cont. P.L.Cont. Neither
Dr Cr Dr Cr a b c d e
1.
2.
3.
4.
5.

A) b
B) d
C) e
D) a
E) c

The double entry system requires that every transaction recorded
by the Cashier should be posted to an appropriate account on the
side opposite the one in which the Cashier entered the amount
involved. If this system fails the failure is flagged up by a
difference arising between the total of all debits and of all credits,
when the balances in all accounts are listed in a Trial balance.
Identify the impact on the trial balance of the following error:
Payment of £420 for stationery has not been entered anywh
1.
2.
3.

A) trial balance balances
B) debit excess of £420
C) debit short of £420

Is an error of omission:
1.

A) a transaction where the credit entry is posted as a debit entry or vice
versa
2. B) a transaction that has been posted to the wrong ledger
3. C) a transaction which has not been included in the total of the ledger it is
posted in
4. D) a transaction that has been completely overlooked

Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Sales account
1.

2.

A) credit
B) debit


Identify whether the account stated below would represent an
Asset, Liability, Income or Expenditure: Machinery a/c
1.
2.
3.
4.

A) Liability
B) Asset
C) Income
D) Expenditure

Double entry accounting reflects:
1.
2.
3.
4.

A) the accruals concept
B) the matching concept
C) the prudence concept
D) the duality concept

The Cashier has recorded the following transaction in a Cash

Book, entering the receipts on the debit side and the payments on
the credit side. Identify which side of the named account would be
posted by the Bookkeeper. Salaries account : £2 000 paid as
salary to shop manager
1.
2.

A) debit
B) credit

Identify the balance that will appear on the bank statement as at
31 March 20x6 based on the following information: Cash book
balance on 31.3.20x6 was £28 640; Deposits not cleared until
then was £45 248 and cheques yet to be presented to the bank
as at that date £11 250.
1.
2.
3.

A) £5 358 overdrawn
B) £62 638
C) £28 640

The invoice for acquisition of a vehicle for £45 000 was entered in
the Purchases Day book and the net profit for the year reported
as £862 480. How would this error affect the performance and
position reported by the business:
1.
2.

A) net profit for the year and the assets by year end will both be overstated
B) net profit for the year and liability at year end will both be understated by
£45 000
3. C) net profit for the year and asset by year end will both be understated
4. D) net profit for the year and liability at year end will both be overstated by
£45 000

A business registered for Value Added Tax has to maintain a VAT
account, crediting it with the "output tax" and debiting it with the
"input tax" calculated at 17.5 / 117.5 of the transaction value. In


respect of the transaction listed below, identify whether you would
account for the VAT element by debiting or crediting the VAT
account or do neither: Credit purchases
1.
2.
3.

A) credit
B) neither
C) debit

Identify the balance that will appear on the bank statement as at
31 March 20x6 based on the following information: Cash book
balance on 31.3.20x6 was £72 468; Deposits awaiting bank
clearance on this date was £11 540 and cheques drawn but not
presented to the bank for payment by this date was £28 780.
1.
2.

3.

A) £72 468
B) £55 228
C) £89 708

Identify whether the account stated below would represent an
Asset, Liability, Income or Expenditure: Advertising a/c
1.
2.
3.
4.

A) Expenditure
B) Liability
C) Income
D) Asset

If the net assets of a business totalled £200 000 and its total
assets on that date amounted to £325 000, its liabilities would
amount to:
1.
2.
3.
4.

A) not sufficient information to calculate
B) £200 000
C) £125 000
D) £525 000

The total of credit purchases found within a purchases ledger
control account comes from:
1.
2.
3.
4.

A) the trial balance
B) the purchases day book
C) the purchases ledger
D) the cash book

Which one of the following is a personal ledger?
1.
2.
3.
4.

A) Petty Cash Book
B) General ledger
C) Cash Book
D) receivables (debtors) ledger


An amount paid in part settlement of a supplier's balance is
accounted for as:
1.
2.
3.

4.

A) debit Supplier's personal account and credit Capital account
B) debit Cash account and credit Supplier's personal account
C) debit Part payment account and credit cash account
D) debit Supplier's personal account and credit Cash account

A trader who commenced business on 1 January 20x5 reports the
balances, as at 31 December 20x5, in the Purchases account and
Sales account as £346 800 and £479 500 respectively. The total
of the balances in all other expense accounts is £112 200. Identify
the gross profit in the first year of operation. The cost of goods
remaining unsold by the year end was £72 400 and, in addition,
stationery which cost £500 remains unused.
1.
2.
3.

A) £205 100
B) £187 100
C) £205 600

Identify whether the account stated below would represent an
Asset, Liability, Income or Expenditure: Shop fittings a/c
1.
2.
3.
4.

A) Income

B) Asset
C) Liability
D) Expenditure

Which one of the following statements is incorrect?
1.
2.

A) balance sheet usually reports assets in the reverse order of liquidity
B) net profit of a period is reported on the balance sheet as part of the
owner’s capital
3. C) owner's drawings should be reported in the Profit and Loss a/c as an
expenditure
4. D) the gross profit is the difference between sales and the cost of goods
sold

Identify the balance that will appear on the bank statement as at
31 March 20x6 based on the following information: Cash book
reports as at 31.3.20x6 a bank overdraft of £32 840; Deposits
awaiting clearance and cheques yet to be presented, on this date,
amount to £22 540 and £54 975 respectively.
1.
2.
3.

A) £32 840 o/d
B) £405
C) £65 275 o/d

For the purpose of establishing the accuracy of the individual
personal ledger balances, a business maintains, on a
memorandum basis, a Sales Ledger Control account (S.L.Cont)
and a Purchases Ledger Control account (P.L.Cont). Identify the
account and its side in which you will enter cheques received
from credit customers : S.L.Cont. P.L.Cont. Neither Dr Cr Dr Cr a
bcde
1.
2.
3.
4.
5.

A) d
B) b
C) c
D) a
E) e

Identify whether the balance brought down, at the year end, in the
named account would be on the debit side or credit side of that
account. Staff Loan account
1.
2.

A) debit
B) credit

If a sales invoice for £72 500 is recorded in the Sales Day Book
as £7 250 the effect of the error on the trial balance will be:

1.
2.
3.
4.

A) the trial balance will balance
B) total of the debit side will exceed that of the credit side by £65 250
C) total of the credit side will exceed that of the debit side by £72 500
D) total of the debit side will exceed that of the credit side by £72 500

Identify whether the account stated below would represent an
Asset, Liability, Income or Expenditure: Cash account
1.
2.
3.
4.

A) Asset
B) Expenditure
C) Liability
D) Income

A payable (creditor) account of £8 500 in the double entry system
represents:
1.
2.
3.
4.

A) an expense of the business

B) a liability of the business
C) an asset of the business
D) an item of income to the business

Identify the account to which you would post the following
transaction recorded in the Cash Account: £25 000 received as a


loan, at 8% per annum interest, from Dave Nicholas, a friend of
the owner.
1.
2.
3.

A) Dave Nicholas's gift account
B) Capital account
C) Dave Nicholas's Loan a/c

Identify whether the account stated below would represent an
Asset, Liability, Income or Expenditure: Stationery account
1.
2.
3.
4.

A) Asset
B) Income
C) Expenditure
D) Liability

For the purpose of establishing the accuracy of the individual
personal ledger balances, a business maintains, on a
memorandum basis, a Sales Ledger Control account (S.L.Cont)
and a Purchases Ledger Control account (P.L.Cont). Identify the
account and its side in which you will enter Cash sales in the
month: S.L.Cont. P.L.Cont. Neither Dr Cr Dr Cr a b c d e
1.
2.
3.
4.
5.

A) a
B) e
C) b
D) d
E) c

A business registered for Value Added Tax has to maintain a VAT
account, crediting it with the "output tax" and debiting it with the
"input tax" calculated at 17.5 / 117.5 of the transaction value. In
respect of the transaction listed below, identify whether you would
account for the VAT element by debiting or crediting the VAT
account or do neither: Expense (stationery)
1.
2.
3.

A) neither
B) debit

C) credit

Which of the following statements is incorrect in relation to
accounting for a supplier’s invoice when accounting for goods
purchased on credit?
1.
2.
3.
4.

A) post the amount of each invoice to the credit of Supplier's account
B) debit Purchases account and credit Cash account
C) enter particulars of the invoice in the Purchases Journal
D) post the periodical total of all invoices to the debit of Purchases account