1. which of the following user groups require most detailed financial information?

A. The management B. Investors and potential investors C. Government agencies D. Empployees

2. An asset is:

A. An item owned by an entity B. An item controlled by an entity C. An item that is owed by the entity D. A short term liability

3. which of the following sentences does not explain the distinction between financial accounts and management account?

A. Financial accounts are primarily for external users and management accounts are primarily for internal usersB. Financial accounts are normally produced annually and mangement accounts are normally prouduced monthly C. Financial accounts are more accurate than management accounts D. Financial accounts are audited by external auditor and management accounts do not normally have external audit

4. Which of the following best describe the meaning of purchaes?

A. Items bought B. Goods bought on credit C. Goods bought for sale D. Goods paid for

5. which of the following best describes a trial balance?

A. It shows the financial position of a business B. It is a special account C. It shows all the entries in the books D. It is a list of balances on the books

6. The sales day book is best described as

A. Part of the double entry system B. Containing customers accounts C. Containing real accounts D. A list of credit sales

7. 'Posting' the transactions in booking means

A. Making the first entry of a double entry transaction B. Entering items in a cash book C. Making the second entry of a double entry transaction D. Something other than the above

8. Given a purchase invoice showing five items of $80 each, less trade discount of $0.25 each and cash discount of 5%, if paid within the credit period, your cheque would be made out for

A. $285 B. $280 C. $260 D. None of the above

9. We originally sold 25 items at $12 each, less 33.5% trade discount. Our customer now returns 4 of them to us. What is the amount of credit to be issued?

A. $48 B. $36 C. $30 D. 32

10. Given a desired cash float of $200, if $146 is spent in the period, how much will be reimbursed at the end of the period

A. $200 B. $54 C. $254 D. $146