(A) The Cash Book
(B) The Purchases Journal
(C) The Sales Journal
(D) The Sales Account
The answer is (C) The Sales Journal
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
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.’
Suppliers personal a/c are seen in the
(A) Sales Ledger
(B) Nominal ledger
(C) Purchases Ledger
(D) General Ledger
The answer is (C) Purchases Ledger
The charges of placing commodities into a saleable condition should be charged to
(A) Trading account
(B) P & L a/c
(C) Balance Sheet
(D) None of the above
The answer is (B) P & L a/c
Which of these best explains fixed assets?
(A) Are bought to be used in the business
(B) Are expensive items bought for the business
(C) Are items which will not wear out quickly
(D) Are of long life and are not purchased specifically for resale
The answer is (D) Are of long life and are not purchased specifically for resale
In order to find out the value of the closing stock during the end of the financial year we,
(A) do this by stocktaking
(B) deduct the cost of goods sold from sales
(C) deduct opening stock from the cost of goods sold
(D) look in the stock account
The answer is (A) do this by stocktaking
Net profit is calculated in which of the following account?
(A) Profit and loss account
(B) Balance sheet
(C) Trial balance
(D) Trading account
The answer is (A) Profit and loss account
Gross profit is
(A) Cost of goods sold + Opening stock
(B) Sales – cost of goods sold
(C) Sales – Purchases
(D) Net profit – expenses
The answer is (B) Sales – cost of goods sold
The debts which are to be repaid within a short period (a year or less) are referred to as,
(A) Current Liabilities
(B) Fixed liabilities
(C) Contingent liabilities
(D) All the above
The answer is (A) Current Liabilities