1 Which one of the following always has a debit balance

1. Capital account
2. Purchases account
3. Sales account
4. Purchases return account

2 Financial accounting differs from management accounting in that they:

1. are prepared monthly for internal control purposes.
2. contain details of costs incurred in manufacturing.
3. are summarised and prepared mainly for external users of accounting information.
4. provide information to enable the trial balance to be prepared.

3 The accounting equation can be rewritten as:

1. assets plus profit less drawings less liabilities equal closing capital.
2. assets less liabilities less drawings equal opening capital plus profit.
3. assets less liabilities less opening capital plus drawings equals profit.
4. opening capital plus profit less drawings less liabilities equals assets.

4 A creditor of a company is someone who:

1. is owed money to by the company
2. owes money to the company
3. wants to buy goods from the company
4. wants to sell shares in the company

5 Gross profit is:

1. Sales less sales return, less cost of sales
2. Sales less sales returns, less purchases, less purchases returns
3. Sales less expenses
4. Sales less sales return, less closing inventory