$14.$ A business had the following assets and liabilities: receivables of $$4,000,$ inventory of $$550,$ motor vehicles of $$12,500,$ payables of $$7,050$ and a bank loan of $$2,500.$ What is the capital balance of the business?

A $$26,600$

B $$7,500$

C $$21,600$

D $$17,050$

$15.$ Collin has extracted the following balances from the ledger accounts for his business: $($All amounts in $$)$ Plant and machinery $95,000$; Property $135,000$; Inventory $6,400$; Payables $3,600$; Receivables$2,850$; Bank overdraft $970$; Loan$45,000$; Capital$100,000$; Drawings$32,000$; Sales $362,000$; Purchases$156,000$; Purchase returns $2,200$; Carriage outwards$?$; Discounts received$3,500$; Sundry expenses $82,500.$ He has forgotten to extract the balance from the carriage outwards account. What is the value of the missing balance?

A $$4,020$

B $$7,520$

C $$5,580$

D $$3,120$

$16.$ What accounting entries are required in the general ledger to record settlement discount received from suppliers?

A Dr Discounts received Cr Payables control account

B Dr Receivables control account Cr Discounts received

C Dr Discounts received Cr Receivables control account

D Dr Payables control account Cr Discounts received

$17.$ A company has been notified that a receivable has been declared bankrupt. The company had previously made a specific allowance for this debt. Which of the following is the correct double entry?

Dr Irrecoverable debts account Dr Account receivable

Dr Account receivable Cr Irrecoverable debts account

Dr Allowance for receivables Cr Account receivable

Dr Account receivable Cr Allowable for receivables

$18.$ Consider the following two statements:$($i$)$Double entry bookkeeping$$ means that two sets of records are maintained.$($ii$)$ In double entry bookkeeping we have a basic check on the accuracy of the entries, as the total value of the debit entries and the total value of the credit entries should be equal. Are the statements true or false?

A $($i$)$ is True $($ii$)$ is True

B $($i$)$ is True $($ii$)$ is False

C $($i$)$ is False $($ii$)$ is True

D $($i$)$ is False $($ii$)$ is False

$20.$ Which is the main accounting concept behind making adjustments for accrued expenses?

A Prudence

B Going concern

C Consistency

D Matching

$21.$ The payment of cash to a supplier will:

A Increase receivables and reduce cash balance

B Reduce cash balance and reduce current liabilities

C Reduce accounts payable and increase purchases

D Increase payables and reduce cash balance

$22.$ The recording of business transactions in an orderly and systematic manner in order to provide information useful for economic decisions making for users of financial statements is called....

A$.$Management Accounting

B$.$Book Keeping

C$.$Financial Accounting

D$.$Accounting

$23.$ Which of the following changes could not occur as a result of an entry in the bookkeeping records?

A Increase asset and increase liability

B Increase asset and increase capital

C Increase capital and increase liability

D Increase capital and decrease liability

$24.$ Jones$$ account is shown below. What was the balance on Jones$$ account as at $31$ January?

A Debit $$250$

B Debit $$1,750$

C Debit $$900$

D Credit $$900$

$25.$ At the year$-$end Misbah is overdrawn on his bank account. He also has a five year bankloan. How should these balances be reported?

A $($Overdraft $=$ Non$-$current liability$)($Loan $=$ Non$-$current liability$)$

B $($Overdraft $=$ Current liability$)($Loan $=$ Current liability$)$

C $($Overdraft $=$ Current liability$)($Loan $=$ Non$-$current liability$)$

D $($Overdraft $=$ Non$-$current liability$)($Loan $=$ Current liability$)$

$26.$ Sara has the following information regarding her credit sales from the sales day book: Total sales including sales tax $$54,000,$ Sales excluding sales tax $$45,000.$ How would she record the entries in the ledger accounts?

A Dr Sales tax $$9,000$ Cr Receivables control account $$45,000$ Dr Sales $$54,000$

B Dr Receivables control account $$54,000$ Cr Sales $$45,000$ Dr Sales tax $$9,000$

C Dr Sales tax $$54,000$ Cr Receivables control account $$9,000$ Dr Sales $$45,000$

D Dr Receivables control account $$54,000$ Cr Sales tax $$9,000$ Cr Sales $$45,000$

$27.$ Which accounting convention is being applied in the creation of a receivables allowance?

A Going concern

B Prudence

C Historic cost

D Single entity

$28.$ Which of the following is not a quality of financial accounts

A$.$Formats are regulated$/$specified by IAS$/$IFRS

B$.$Historical orientation

C$.$Inward looking

D$.$Has both internal and external users

$29.$ Which one of the following is not an accounting concept?

A$.$Prudence

B$.$Consistency

C$.$Depreciation

D$.$Accruals

$30.$ Which one of the following is the correct version of the accounting equation?

A Non$-$current assets $$ current assets $=$ capital $$ current liabilities $+$ non$-$current liabilities

B Non$-$current assets $+$ current assets $+$ current liabilities $=$ capital $+$ non$-$current liabilities

C Current assets $+$ non$-$current assets $=$ capital $+$ current liabilities $+$ non$-$current liabilities

D Capital $=$ current assets $+$ non$-$current assets $+$ current liabilities $+$ no