1. Which of the following errors would be found by preparing a trial balance?

A. A transaction has been completely missed in the accounts

B. The double entries have been made the wrong way round

C. Different figures have been entered for the debit and credit entries

D. An expense item has been posted to a non-current asset account

2. RM50 cash taken from the cash till and banked is entered

A. Debit till account RM50: Credit bank account RM50

B. Debit bank account RM50: Credit cash account RM50

C. Debit cash account RM50: Credit bank account RM50

D. Debit bank account RM50: Credit bank account RM50

3. Which of the following should not be called 'Sales'?

A. Office fixtures sold

B. Goods sold on credit

C. Goods sold for resale

D. Sale of item previously included in "Purchases"

4. Which of the following statements is correct?

A. Profit does not alter capital

B. Profit reduces capital

C. Capital can only come from profit

D. Profit increases capital

5. Frank introduces his van into his business.Which parts of the business' accounting equation will change?

A. Assets and capital

B. Capital and profit

C. Liabilities and assets

D. Capital and liabilities

6. Which double entries correctly record the cash purchase of plant and equipment?

A. Dr Cash: Cr Plant and equipment

B. Dr Plant and equipment: Cr Cash

C. Dr Purchases: Cr Plant and equipment

D. Dr Plant and equipment: Cr Purchases

7. Which of the following should be regarded as a current liability?

1. Trade receivables

2. Bank overdraft

3. Trade payables

4. Drawings

A. 1 and 2

B. 2 and 3

C. 3 and 4

D. 2 and 4

8. Is it true that the trial balance totals should agree?

A. No, there are sometimes good reasons why they differ

B. Yes, except where the trial balance is extracted at the year end

C. Yes, always

D. No, because it is not a statement of financial position

9. Gross profit is

A. Excess of sales over cost of goods sold

B. Sales less purchases

C. Cost of goods sold + opening inventory

D. Net profit less expenses of the period

10. To find the value of closing inventory at the end of a period we

A. Do this by physically counting the inventory (i.e. stocktaking)

B. Look in the inventory account

C. Deduct opening inventory from cost of goods sold

D. Deduct cost of goods sold from sales

11. The following ledger balances make up a company's trial balance:

RM

Sales 76, 700

Purchases 26, 800

Equipment 31, 400

Accounts payable 18, 200

Accounts receivable 32, 300

Cash at bank 14, 200

Capital 9, 800

Which is the total of the debit column in the trial balance?

A. RM94, 900

B. RM104, 700

C. RM105, 900

D. RM209, 400

12. Laura has a bank balance of RM550 at the start of the week.During the week, the following transactions occur:

Day 1 She sells goods on credit for RM876

Day 2 She receives a cheque for RM400 from a credit customer

Day 3 She purchases office equipment for RM900 paying immediately by cheque

How much does Laura have in the bank at the end of the week?

A. RM926

B. RM400

C. RM50

D. RM126

13. You are given the following figures:

RM

Sales 8, 200

Carriage inwards 200

Carriage outwards 300

Closing inventory 900

Opening inventory 1, 300

Purchases 6, 400

The cost of goods sold is:

A. RM6, 800

B. RM6, 200

C. RM7, 000

D. RM7, 300

14. You are given the following figures:

RM

Accounts payable 27, 000

Accounts receivable 29, 000

Buildings 582, 000

Cash in hand 32, 700

Equipment 113, 500

Land 120, 000

Bank overdraft 15, 000

The net assets figure is:

A. RM61, 700

B. RM835, 200

C. RM815, 500

D. RM919, 200

15. The following are extracts from an income statement for the year ended 31 May 2020:

RM

Sales 9, 500

Carriage inwards 300

Office staff salary 4, 500

Closing inventory 900

Office rent 7, 700

Purchases 6, 400

The gross profit is:

A. RM3, 100

B. RM3, 700

C. RM4, 000

D. RM4, 500

16. If a business commenced the day with RM3, 400 in hand and receives RM42, 800 and pays out RM44, 200 during the day, the cash account balance at the end of the day would be:

A. RM1, 400

B. RM4, 800

C. RM2, 000

D. RM46, 200

17. You are given the following information at 1 May:

Assets: Premises RM34, 000; Van RM5, 125; Fixtures RM810; Inventory RM6, 390; Accounts receivable: P Mullan RM140; F Lane RM310; Cash at bank RM6, 240; Cash in hand RM560

Liabilities: Accounts payable: S Hood RM215; J Brown RM460

What is the capital figure?

A. RM53, 575

B. RM52, 900

C. RM675

D. RM54, 250

18. Calculate the net profit from the following:

RM

Motor vehicle purchased 30, 200

Motor vehicle repairs 4, 560

Drawings 25, 000

Salaries and wages 18, 000

Utilities 15, 900

Insurance 8, 000

Gross profit 81, 000

A. RM182, 660

B. RM9, 540

C. RM34, 540

D. RM4, 340

19. Which of these best described non-current assets?

A. Items bought to be used by the business

B. Items which will wear out quickly

C. Expensive items bought for the business

D. Items having a long life and not bought specifically for resale

20. Net profit is calculated in

A. Trading account

B. Profit and loss account

C. Trial balance

D. Statement of financial position