Multiple Choice Questions 4.

2
Question 1: The double entry required to record any given transaction.
Debit trade receivables, credit sales is the double entry to record which
transaction?
a) A cash sale to a customer.
b) A credit sale to a customer.
c) A cash refund to a customer.
d) The cancellation of a credit sale to a customer.

Question 2: The double entry required to record any given transaction.

Debit trade payables, credit cost of sales is the double entry to record
which transaction?
a) A return of goods to a supplier.
b) A purchase of goods from a supplier.
c) A refund received from a supplier.
d) A cash payment to a supplier.

Question 3: The double entry required to record any given transaction.

Petra pays all her personal electricity bills for her house from her
business' bank account. What is the correct double entry to record this
transaction?
a) Debit electricity expense, credit cash.
b) Debit capital account, credit cash.
c) Debit cash, credit capital account.
d) Debit cash, credit electricity expense.

Question 4: The double entry required to record any given transaction.

Claudio buys a new van for his delivery business for £20,000 using cash
from the business bank account. What is the correct double entry to
record this transaction?
a) Debit van £20,000, credit trade payables £20,000.
b) Debit cash £20,000, credit van £20,000.
c) Debit trade payables £20,000, credit van £20,000.
d) Debit van £20,000, credit cash £20,000.

Question 5: The double entry required to record any given transaction.

Christiana's business makes and sells clothing to retailers. She makes a
sale to a customer on credit for £1,000. The customer returns the goods
as they are damaged. What is the correct double entry to record this
return of goods?
a) Debit trade receivables £1,000, credit sales £1,000.
b) Debit sales £1,000, credit cash £1,000.
c) Debit sales £1,000, credit trade receivables £1,000.
d) Debit cost of sales £1,000, credit trade receivables £1,000.

Question 6: The double entry required to record any given transaction.

Oliver's garden design and build business buys fencing panels from
suppliers on credit. The fencing panels will be used on contracts
undertaken for customers. What is the correct double entry to record this
transaction in Oliver's books of account?
a) Debit trade payables, credit cost of sales.
b) Debit cost of sales, credit cash.
c) Debit cost of sales, credit trade payables.
d) Debit cash, credit trade payables.
Question 7: The double entry required to record any given transaction.
Debit cash, credit trade receivables is the double entry to record which
transaction?
a) A receipt of cash from a credit customer.
b) A credit sale to a customer.
c) The cancellation of a credit sale to a customer.
d) Notification that a trade receivable has become an irrecoverable
debt.

Question 8: The double entry required to record any given transaction.

Debit trade payables, credit cash is the double entry to record which
transaction?
a) The cancellation of a purchase from a supplier.
b) The payment of cash to a supplier for goods supplied on credit.
c) The purchase of goods from a supplier on credit terms.
d) The purchase of goods from a supplier for cash.