1. The main aim of accounting is: a) to provide a sufficient information to prepare a trial balance b) to record all the bank and cash transactions that occur at a business c) to enable a business to see the amounts owing to it from customers d) to provide financial information to the users 2. Which of the following may be classified as a non-current asset? a) Inventory b) Accounts Receivable c) Land d) Accounts Payable 3. Which of the following fixed assets would not depreciate? a) Building b) Land c) Plant and Machinery d) Motor Vehicle 4. In a statement of financial position for a sole trader the balance of the non-current assets are usually included at: a) Cost b) Scrap Value c) Net Book Value d) none of above 5. Sales for the period were 74,500 and gross profit was established at 34,750. Opening inventory was valued at 3,000 and purchases for the period were 40,000. Closing inventory, therefore, was valued at: a) 3,250 b) 2,750 c) 3,550 d) 3,050 6. . The journal entry to account for depreciation transaction is: a) Debit fixed assets a/c (SOFP): Credit provision for depreciation a/c (SOFP) b) Debit provision for depreciation a/c (SOFP): Credit depreciation a/c (IS) c) Debit depreciation (SOFP): Credit fixed assets a/c (IS) d) Debit depreciation a/c (IS): Credit provision for depreciation a/c (SOFP) 7. Which of the following should appear in the income statement? a) Rent b) Motor Vehicles C) Plant and Machinery d) Computer Equipment 8. Examine the working capital of Gordon shown below: Inventory Receivables Payables Bank overdraft 11,200 9,000 20.200 4,200 3,200 (7.400) Calculate the current ratio of Gordon a) 1.22:1 b) 1.51:1 c) 2.73:1 d) 2.37:1 9. Which of following statements refer to Management Accounting? 1) Management Accounting is usually forward looking. 2) Management Accounting provides information to internal users such as managers and decision makers. 3) Management Accounting practices is governed by law and/or regulation 4) Management Accounting information is available to public. a) 3,4 b) 1.2 c) 2,3 d) 1,4