Accounting for Managers

331. Given figures showing: Sales £8,200; Opening stock £1,300; Closing stock £900; Purchases £6,400; Carriage inwards £200, the cost of goods sold figure is:

1. Another figure
2. £6,200
3. £6,800
4. £7,000

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332. When Lee makes out a cheque for £50 and sends it to Young, then Lee is known as:

1. The payee
2. The banker
3. The drawer
4. The creditor

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333. 'Posting' the transactions in bookkeeping means:

1. Making the second entry of a double entry transaction
2. Entering items in a cash book
3. Making the first entry of a double entry transaction
4. Something other than the above

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334. Given a purchases invoice showing 5 items of £80 each, less trade discount of 25 per cent and cash discount of 5 per cent, if paid within the credit period, your cheque would be made out for:

1. £260
2. £280
3. £285
4. None of these

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335. We originally sold 25 items at £12 each, less 331/3 per cent trade discount. Our customer now returns 4 of them to us. What is the amount of credit note to be issued?

1. £36
2. £30
3. £32
4. £48

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336. At the balance sheet date the balance on the Accumulated Provision for Depreciation Account is:

1. Transferred to Depreciation Account
2. Transferred to the Asset Account
3. Transferred to Profit and Loss Account
4. Simply deducted from the asset in the Balance Sheet

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337. A credit balance brought down on a Rent Account means:

1. We have paid too little in rent
2. We have paid too much rent
3. We owe that rent at that date
4. We have paid that rent in advance at that date

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338. Which of the following are not true? A Bank Reconciliation Statement is

1. (i) Part of the double entry system
2. (ii) Not part of the double entry system
3. (iii) Sent by the firm to the bank
4. (iv) Posted to the ledger accounts.

1. (i), (ii) and (iv)
2. (i), (iii) and (iv)
3. (i) and (ii)
4. (ii), (iii) and (iv)

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339. Which of the following do not affect trial balance agreement?

1. (i) Sales £105 to A Henry entered in P Henry's account
2. (ii) Cheque payment of £134 for Motor expenses entered only in Cash Book
3. (iii) Purchases £440 from C Browne entered in both accounts as £404
4. (iv) Wages account added up incorrectly, being totaled £10 too much.

1. (i) and (iii)
2. (ii) and (iii)
3. (i) and (iv)
4. (iii) and (iv)

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340. What should happen if the balance on a Suspense Account is of a material amount?

1. Write it off to Profit and Loss Account
2. Should be written off to the balance sheet
3. Carry forward the balance to the next period
4. Find the error(s) before publishing the final accounts

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