1. Which of the following is not a function of the accounts office?

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A. Preparing maintenance records

B. Dealing with credit and budgetary control

C. Collecting outstanding debts and paying creditors

D. Keeping accounting records and costings of products

2. What is the first action to take when customer fails to pay his debts?

A .Send a letter and charge him interest on arrears

B. Ask the customer to pay a composition if he/she is unable to settle the full account

C Send a statement informing the customer of the current balance and remind him/her of the
instalment date

D. Make arrangement to repossess the article(s) if sold on hire purchase

Option 16

3. The purpose of credit control is to:

A. Force customers to buy less on credit

B. Reduce the risk of bad debts

C. Verify the creditworthiness of customers

D. Encourage customers to make cash purchases

4. The purpose of auditing books of accounts is to

A. Check the accuracy of the records

B. Detect errors and to prevent their recurrence

C. Scrutinize the accountability of funds

D. Discover money stolen and apprehend defaulters

5. Identify in the following list the function of the accounts office.

I controlling the finances of a firm so that the main business objectives are

achieved

Il Ensuring that the legal financial requirements are fulfilled by keeping

Adequate records
III Ensuring the firm continues in business

IV Advising the firm of any bad debts and whether it is losing funds

A I, Il and IIl only

B I, IIl and IV only

C II. Ill and IV only

D I, II, III and IV

Which of the following are included in the duties of a clerk in the accounts office

I Writing cheques

II Reconciling accounts

III Preparing individual earnings records

IV Preparing final accounts

A I ii and III only

B I,IIl and IV only

C II III and IV only

D I II III and IV

2 Which of the following are the responsibilities of a clerk in the accounts office?

I Liaising with other departments in the firm

Il Keeping an adequate supply of forms used in the accounts office

III Observing the confidentiality of customers records

IV Preparing and processing purchase requisitions

A II l and IIl only

B IIl and IV only

C Il and IV only

D I II, IIl and IV only

3. What action should an accounts clerk take when a purchase order is received?

A. Journalize the entry in the purchases book and file the order

B. Enter the item in the purchases book and supplier's account and file the order

C. Debit the purchases book and credit the supplier's account

D. Debit the purchases account and credit the supplier's account

4. What entries are made in the books of accounts when a firm sends an invoice to a customer?

A. Debit the customer's account and credit the sales account

B Credit the sales book and debit the customer's account

C. Enter the item in the sales book and debit the customer's account

D Journalize the entry in the sales book and file the invoice

5. Identify from the list below the duties of a clerk in the accounts office

I .Preparing the payroll

Il Preparing statement of accounts

III Making ledger entries

IV Writing up the cashbook

V Obtaining price quotations

A. I, II, III and IV only

B. I, III and IV only

C 1,II, IV and V only

D. III, IV and V only