Question 1

When a business pays its electricity bill by cheque the double entry is:

Accepted Answer

A)   Debit: Heat and light account Credit: Bank account
B)   Debit: Cash account Credit: Heat and light account
C)   Debit: Heat and light account Credit: Cash account
D)   Debit: Bank account Credit: Heat and light accountE) All of the above
F) None of the above

Question 2

What transaction is represented by the entries? Debit: R. Ray
Credit: Bank

Accepted Answer

A)   The purchase of goods from R. Ray by cheque
B)   The sale of goods to R. Ray (they pay by cheque) 
C)   Receipt of a cheque from R. Ray
D)   Payment by cheque to R. RayE) C) and D)
F) None of the above

Question 3

The trading and income statement:

Accepted Answer

A)   Is only prepared once each year
B)   Shows the entity's financial position at a point in time
C)   Is not part of the double entry system?
D)   Is part of the double entry system?E) A) and B)
F) A) and C)

Question 4

Which of the following are incorrect?

Accepted Answer

A)   (1)  and (4)  only
B)   (1)  and (2)  only
C)   (2)  and (3)  only
D)   (1)  and (3)  onlyE) A) and B)
F) C) and D)

Question 5

Which of the following correctly records the purchase of a lorry on credit from D. Watson?

Accepted Answer

A)   Dr. Purchases account Cr. D. Watson account
B)   Dr. D. Watson account Cr. Purchases
C)   Dr. Motor vehicles account Cr. D. Watson account
D)   Dr. D. Watson account Cr. Motor vehicles accountE) B) and C)
F) None of the above

Question 6

Which of the following are not entered in the statement of financial position?

Accepted Answer

A)   Assets
B)   Drawings
C)   Capital introduced
D)   Heat and lightE) None of the above
F) A) and B)

Question 7

Which of the following statements is true?

Accepted Answer

A)   To record an increase in any given asset account that account must be debited
B)   To record a decrease in capital, the capital account must be credited
C)   To record an increase in any given liability account that account must be debited
D)   To record a decrease in any given liability account must be creditedE) A) and D)
F) A) and C)

Question 8

What transaction is represented by the entries? Debit: Bank
Credit: Sales

Accepted Answer

A)   The purchase of goods from R. Ray by cheque
B)   The sale of goods to R. Ray (they pay by cheque) 
C)   Receipt of a cheque from R. Ray
D)   Payment by cheque to R. RayE) None of the above
F) A) and B)

Question 9

Which of the following correctly records the sale of a lorry on credit to D. Watson (assume no profit
Or loss on the sale) :

Accepted Answer

A)   Dr. Motor vehicles account Cr. Bank account
B)   Dr. Bank account Cr. Motor vehicles account
C)   Dr. Motor vehicles account Cr. D. Watson account
D)   Dr. D. Watson account Cr. Motor vehicles accountE) C) and D)
F) B) and D) D

Question 10

What transaction is represented by the entries? Debit: Bank
Credit: R. Ray

Accepted Answer

A)   The purchase of goods from R. Ray by cheque
B)   The sale of goods to R. Ray (they pay by cheque) 
C)   Receipt of a cheque from R. Ray
D)   Payment by cheque to R. RayE) All of the above
F) B) and C) C

Question 11

What transaction is represented by the entry? Credit: Commission
Debit: T. McKee

Accepted Answer

A)   The issue of an invoice for commission to T McKee
B)   The payment of commission by the entity
C)   The receipt of a bill for commission payable by the entity
D)   The receipt of commission income by the businessE) A) and C)
F) All of the above

Question 12

Which of the following correctly records the sale of a lorry paid for by cheque by D. Watson (assume
No profit or loss on the sale and the entity's bank account is in overdraft) :

Accepted Answer

A)   Dr. Motor vehicles account Cr. Bank account
B)   Dr. Bank account Cr. Motor vehicles account
C)   Dr. Motor vehicles account Cr. D. Watson account
D)   Dr. D. Watson account Cr. Motor vehicles accountE) C) and D)
F) A) and B)

Question 13

When a business purchases goods on credit the double entry is:

Accepted Answer

A)   Debit: Purchases account Credit: Bank account
B)   Debit: Purchases account Credit: Trade payables account
C)   Debit: Trade payables account Credit: Purchases account
D)   Debit: Purchases account Credit: Trade receivables accountE) A) and D)
F) None of the above

Question 14

Which of the following are correct?

Accepted Answer

A)   (1)  and (4)  only
B)   (1)  and (2)  only
C)   (2)  and (3)  only
D)   (1)  and (3)  onlyE) C) and D)
F) B) and C) A

Question 15

A debit balance on a ledger account indicates

Accepted Answer

A)   An asset or an expense
B)   A liability or an expense
C)   An amount owing to the organisation
D)   A liability or revenueE) None of the above
F) A) and C)

Question 16

When goods that were sold on credit are returned the double entry is:

Accepted Answer

A)   Debit: Returns outward account Credit: Trade receivables account
B)   Debit: Returns inward account Credit: Trade receivables account
C)   Debit: Trade receivables account Credit: Sales return account
D)   Debit: Sales returns account Credit: Returns inward accountE) C) and D)
F) All of the above

Exam 9: The General Ledger

When a business pays its electricity bill by cheque the double entry is:

Correct Answer
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What transaction is represented by the entries? Debit: R. Ray Credit: Bank

Correct Answer
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The trading and income statement:

Correct Answer
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Which of the following are incorrect?

Correct Answer
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Which of the following correctly records the purchase of a lorry on credit from D. Watson?

Correct Answer
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Which of the following are not entered in the statement of financial position?

Correct Answer
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Which of the following statements is true?

Correct Answer
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What transaction is represented by the entries? Debit: Bank Credit: Sales

Correct Answer
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Which of the following correctly records the sale of a lorry on credit to D. Watson (assume no profit Or loss on the sale) :

Correct Answer
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D

What transaction is represented by the entries? Debit: Bank Credit: R. Ray

Correct Answer
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C

What transaction is represented by the entry? Credit: Commission Debit: T. McKee

Correct Answer
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Which of the following correctly records the sale of a lorry paid for by cheque by D. Watson (assume No profit or loss on the sale and the entity's bank account is in overdraft) :

Correct Answer
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When a business purchases goods on credit the double entry is:

Correct Answer
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Which of the following are correct?

Correct Answer
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A

A debit balance on a ledger account indicates

Correct Answer
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When goods that were sold on credit are returned the double entry is:

Correct Answer
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Exam 9: The General Ledger

When a business pays its electricity bill by cheque the double entry is:

Correct AnswerverifiedShow Answer

What transaction is represented by the entries? Debit: R. Ray Credit: Bank

Correct AnswerverifiedShow Answer

The trading and income statement:

Correct AnswerverifiedShow Answer

Which of the following are incorrect?

Correct AnswerverifiedShow Answer

Which of the following correctly records the purchase of a lorry on credit from D. Watson?

Correct AnswerverifiedShow Answer

Which of the following are not entered in the statement of financial position?

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

What transaction is represented by the entries? Debit: Bank Credit: Sales

Correct AnswerverifiedShow Answer

Which of the following correctly records the sale of a lorry on credit to D. Watson (assume no profit Or loss on the sale) :

Correct AnswerverifiedD

What transaction is represented by the entries? Debit: Bank Credit: R. Ray

Correct AnswerverifiedC

What transaction is represented by the entry? Credit: Commission Debit: T. McKee

Correct AnswerverifiedShow Answer

Which of the following correctly records the sale of a lorry paid for by cheque by D. Watson (assume No profit or loss on the sale and the entity's bank account is in overdraft) :

Correct AnswerverifiedShow Answer

When a business purchases goods on credit the double entry is:

Correct AnswerverifiedShow Answer

Which of the following are correct?

Correct AnswerverifiedA

A debit balance on a ledger account indicates

Correct AnswerverifiedShow Answer

When goods that were sold on credit are returned the double entry is:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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D

Correct Answer
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C

Correct Answer
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A

Correct Answer
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Correct Answer
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