Accounting for Managers

351. Sales invoices are first entered in:

  1. The Cash Book
  2. The Purchases Journal
  3. The Sales Journal
  4. The Sales Account
Correct answer: (C)
The Sales Journal

352. Credit notes issued by us will be entered in our:

  1. Sales Account
  2. Returns Outwards Journal
  3. Returns Inwards Journal
  4. Returns Inwards Account
Correct answer: (C)
Returns Inwards Journal

353. If an accumulated provision for depreciation account is in use then the entries for the year's depreciation would be:

  1. Credit Asset Account, debit Provision for Depreciation Account
  2. Debit Asset Account, credit Profit and Loss Account
  3. Credit Provision for Depreciation Account, debit Profit and Loss Account
  4. Credit Profit and Loss Account, debit Provision for Depreciation Account
Correct answer: (C)
Credit Provision for Depreciation Account, debit Profit and Loss Account

354. If we take goods for own use we should:

  1. Debit Drawings Account: Credit Purchases Account
  2. Debit Drawings Account: Credit Stock Account
  3. Debit Sales Account: Credit Stock Account
  4. Debit Purchases Account: Credit Drawings Account
Correct answer: (A)
Debit Drawings Account: Credit Purchases Account

355. A cheque paid by you, but not yet passed through the banking system, is:

  1. A credit transfer
  2. A dishonored cheque
  3. An un-presented cheque
  4. A standing order
Correct answer: (C)
An un-presented cheque

356. Given desired cash float of £200, if £146 is spent in the period, how much will be reimbursed at the end of the period?

  1. £53
  2. £146
  3. £254
  4. £200
Correct answer: (B)
£146

357. Which of these errors would be disclosed by the trial balance?

  1. A purchase of £250 was omitted entirely from the books
  2. Credit sales of £300 entered in both double entry accounts as £30
  3. Selling expenses had been debited to Sales Account
  4. Cheque £95 from C Smith entered in Smith's account as £59
Correct answer: (D)
Cheque £95 from C Smith entered in Smith's account as £59

358. MC83 If cost price is £90 and selling price is £120, then:

  1. (i) Mark-up is 25 per cent
  2. (ii) Margin is 331/3 per cent
  3. (iii) Margin is 25 per cent
  4. (iv) Mark-up is 331/3 per cent
  1. (i) and (ii)
  2. (i) and (iii)
  3. (iii) and (iv)
  4. (ii) and (iv)
Correct answer: (C)
(iii) and (iv)

359. A Receipts and Payments Account is one:

  1. In which the surplus of income over expenditure is calculated
  2. In which the opening and closing cash balances are shown
  3. Which is accompanied by a balance sheet
  4. In which the profit is calculated
Correct answer: (B)
In which the opening and closing cash balances are shown

360. Where there is no partnership agreement then profits and losses:

  1. Must be shared equally
  2. Must be shared in same proportion as capitals
  3. Must be shared equally after adjusting for interest on capital
  4. None of these
Correct answer: (A)
Must be shared equally
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