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Accounting MCQs

Accounting MCQs

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Published by saeedqk

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Published by: saeedqk on Oct 22, 2009
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06/11/2013

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1
ACCOUNTING MOCK-P1
6/iv/09
PRINCIPLES OF ACCOUNTS
Turn over Paper-1
 
1.
A company’s trial balance failed to agree, the totals being:Debit £815,602Credit £808,420
Which one of the following errors could fully account for the difference?A
The omission from the trial balance of the balance on the insurance expenseaccount £7,182 debit
B
Discount allowed £3,591 debited in error to the discount received account
C
No entries made in the records for cash sales totalling £7,182
D
The returns outwards total of £3,591 was included in the trial balance as a debitbalance
2. Which of the following items could appear on the
credit 
side of a Debtors ledger control account?
(1) Cash received from customers(2) Bad debts written off (3) Increase in allowance for doubtful debts(4) Discounts allowed(5) Sales(6) Credits for goods returned by customers(7) Cash refunds to customers
A (1), (2), (4) and (6)B (1), (2), (4) and (7)C (3), (4), (5) and (6)D (5) and (7)3.
A business has compiled the following information for the year ended 31 October 2002:£Opening inventory 386,200Purchases 989,000Closing inventory 422,700The gross profit as a percentage of sales is always 40%
Based on these figures, what is the sales revenue for the year?A £1,333,500B £1,587,500C £2,381,250D The sales revenue figure cannot be calculated from this information
 
4. Which of the following correctly describes the imprest system of operating pettycash?A
The petty cash float is replenished by regular periodic transfers of equal amount.
B
The petty cash float is replenished by periodic transfers of the actual expenditure inthe period.
C
All expenses must be supported by a properly authorised voucher.
D
Petty cash is operated outside the business double entry accounting system.
 
2
ACCOUNTING MOCK-P1
6/iv/09
PRINCIPLES OF ACCOUNTS
Turn over Paper-1
 
5.
In preparing a company’s bank reconciliation statement at March 2003, the following itemsare causing the difference between the cash book balance and the bank statementbalance:(1) Bank charges
£
380(2) Error by bank
£
1,000 (cheque incorrectly debited to the account)(3) Lodgments not credited
£
4,580(4) Outstanding cheques
£
1,475(5) Direct debit
£
350(6) Cheque paid in by the company and dishonored
£
400
Which of these items will require an entry in the cash book?A
2, 4 and 6
B
1, 5 and 6
C
3 and 4
D
3 and 5
6.
Ed’s year end is 30 September. He depreciates office furniture at 15% per annum on thestraight line basis. A full year’s depreciation is charged in the year an asset is purchased,and no depreciation is charged in the year it is sold. In March 2005 Ed bought officefurniture for $80,000.
If he sells the office furniture for $39,000 in July 2008, what will be Ed’s profit or losson disposal?A
a profit of $7,000
B
a loss of $7,000
C
a profit of $5,000
D
a loss of $5,000
7. Which of the following statements describes current assets?A
assets which are currently located on the business premises
B
assets which are used to conduct the organization’s current business
C
assets which are expected to be converted into cash in the short term
D
assets which are not expected to be converted into cash in the short term
8. Which of the following is the correct journal entry to record a credit note issued to acustomer for goods returned?A
Debit Sales returnsCredit Cash
B
Debit CashCredit Sales returns
C
Debit Trade receivablesCredit Sales returns
D
Debit Sales returnsCredit Trade receivables
 
3
ACCOUNTING MOCK-P1
6/iv/09
PRINCIPLES OF ACCOUNTS
Turn over Paper-1
 
9.
In the year to 31 May 2008, Lesley’s sales totaled $600,000 and her cost of sales totalled$480,000
What are the correct figures for Lesley’s mark up and margin?
Mark up Margin
A
25% 25%
B
25% 20%
C
20% 25%
D
20% 20%
10.
At his year end, Keith had accrued expenses totalling $4,176 and prepaid expensestotalling $3,718.
How should the accrued and prepaid expenses be reported on Keith’s statement of financial position (balance sheet)?A
as a current asset of $458
B
as a current liability of $458
C
as a current asset of $4,176 and a current liability of $3,718
D
as a current asset of $3,718 and a current liability of $4,176
11. Which of the following is the correct formula to calculate cost of sales?A
Purchases – Opening inventory – Closing inventory
B
Purchases + Opening inventory + Closing inventory
C
Purchases – Opening inventory + Closing inventory
D
Purchases + Opening inventory – Closing inventory
12. Into which income statement columns of the extended trial balance should thebalances for sales returns and purchases returns be extended?
Sales returns Purchases returns
A
debit debit
B
debit credit
C
credit debit
D
credit credit
13.
In June 2008 Laura bought goods for $12,000. She paid $11,000 of this by cheque andagreed a 30 day credit period for the balance. She intends to buy more goods for $13,000in July 2008.
What value should be reported for Laura’s payables at 30 June 2008?A
$25,000
B
$14,000
C
$13,000
D
$1,000

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