1. A debit balance of $2000 on the bank account in the bookkeeping system of a business means:

a. This business has money in the bank of $2000

b. The balance of cash held by the business is $2000

c. The owner's capital is $2000

d. The business is overdrawn at the bank by $2000

2. If a business receives a cash payment from a debtor, the transaction will be shown as:

a. Debit the cash account and credit purchases account

b. Debit the cash account and debit the bank account

c. Debit the cash account and debit the debtor account

d. Debit the cash account and credit the debtor account

3. Gross profit is calculated by which of the following?

a. Sales - sales returns

b. Sales - sales returns + opening inventory

c. Sales revenue - all expenses

d. Sales - sales returns - cost of sales

4. Given the following information, calculate the cost of goods sold:

Sales $80,000

opening Inventory $4,000

Closing inventory $36,000

Purchases $76,000

Carriage Inwards $6,000

a. $50,000

b. None of these options

c. $30,000

d. $40,000