1- Bashir pays us his account by cheque $88, deducting $2 cash discount. The amount of $88 will be entered in Cash Book on: Debit Side of Cash Column

Debit side of Bank Column

Credit side of Cash Column

Credit side of Cash Column

2- Al Bajha Company grants a $ 400 allowance to a customer for damage resulting from improperly packed merchandise. If the customer has not yet paid the account, the required journal entry would be: DEBIT Sales return and allowances $400 CREDIT Accounts receivable $400

DEBIT Purchases $400 CREDIT Cash $400

DEBIT Cash $400 CREDIT Sales $400

DEBIT Accounts receivable $ 400 CREDIT Sales return and allowances $400

3- Purchase of goods on credit from Lames for $819 entered in the correct accounts in error as $891 is a:

Transposition error

Complete reversal of entries

Compensating errors

Error of Omission

4- Which of the following statement is true?

An accrual of expense appears as a Current Asset in the Statement of Financial Position

An accrual of Expenses is added to the expense in the Income Statement

An accrual of expense is deducted from the expense in the Income Statement

An accrual of Expense increases the profit

5- Which of the following statements is correct? The sales discount column is included in the cash receipts side of Cash book

The purchases journal records all purchases of merchandise whether for cash or on credit

.The cash receipts journal records sales on credit.

Goods returned by the buyer is recorded by the seller in the purchases journal.

6- Which of the following errors will affect the trial balance? The purchase of a laptop for $389 had been entered in error in the Office Expenses account

.A sale of goods for $630 to Jasim had been entered in Jawad account.

A cheque of $150 paid to Karim had been correctly entered in the cash book, but had not been entered in Karims account.

The purchase of a printer on credit from Darwish for $846 had been completely omitted from our books.

7- A sale of fittings $320 had been entered in the Sales account is an: Error of Commission

Transposition Error

Error of Principle

Error of Omission

8-If a customer returns goods for credit, the selling company normally makes an entry in the: Returns inwards journal. Returns outwards journal. General journal.Sales journal.

Home Furnishings reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory.

Inventory	Quantity	Unit Cost	Unit NRV
		$	$
Furniture	200	85	100
Electronics	50	400	300

Using the lower of cost and net realizable method, for what amount would Home Furnishings report ending inventory?