If you want to ensure that your money will be secured if cheques sent are wasted in the post, you should

(A) Always pay by cash
(B) Cross your Cheques ‘Account Payee only, Not Negotiable.’
(C) Always get the money in person
(D) Not use the postal service in future

The answer is (B) Cross your Cheques ‘Account Payee only, Not Negotiable.’

Discounts received are

(A) Buyer of goods granted discount by seller
(B) Deducted when we receive cash
(C) Given by us when we sell goods on credit
(D) None of these

The answer is (A) Buyer of goods granted discount by seller

Sales invoices are first entered in

(A) The Cash Book
(B) The Purchases Journal
(C) The Sales Journal
(D) The Sales Account

The answer is (C) The Sales Journal

Entered in the Purchases Journal are

(A) Discounts received
(B) Purchases invoices
(C) Payments to suppliers
(D) Trade discounts

The answer is (B) Purchases invoices

At the balance sheet date, the balance on the Accumulated Provision for Depreciation Account is

(A) Simply deducted from the asset in the Balance Sheet
(B) Transferred to Profit and Loss Account
(C) Transferred to the Asset Account
(D) Transferred to Depreciation Account

The answer is (A) Simply deducted from the asset in the Balance Sheet

If we take goods for own use we should

(A) Debit Drawings Account, Credit Purchases Account
(B) Debit Drawings Account: Credit Stock Account
(C) Debit Sales Account: Credit Stock Account
(D) Debit Purchases Account: Credit Drawings Account

The answer is (A) Debit Drawings Account, Credit Purchases Account

When a petty cash book is kept there will be

(A) No entries made at all in the general ledger for items paid by petty cash
(B) The same number of entries in the general ledger
(C) Fewer entries made in the general ledger
(D) More entries made in the general ledger

The answer is (C) Fewer entries made in the general ledger

If it is required to maintain fixed capitals then the partners’ shares of profits must be

(A) Credited to capital accounts
(B) Debited to capital accounts
(C) Debited to partners’ current accounts
(D) Credited to partners’ current accounts

The answer is (D) Credited to partners’ current accounts

The value of goods and services produced by residents of a country and the value of their property is called_________.

(A) Gross domestic product
(B) Net domestic product
(C) Gross national income
(D) Net national income

The answer is (C) Gross national income