2. Given the following, what is the amount of Capital? Assets: Premises $20,000; Inventory $8,500; Cash $100. Liabilities: Accounts payable $3,000; Loan from A.Adams $4,000:

1. $21,100

b. $21,600

c. $32,400

d. $21,400

3. A debit balance of $100 in a cash account shows that:

1. There was $100 cash in hand

2. Cash has been overspent by $100

3. $100 was the total of cash paid out

4. The total of cash received was less than $100

4. Discounts received are:

1. None of the below

2. Deducted when we receive cash

3. Given by us when we sell goods on credit

4. Deducted by us when we pay our accounts

5. Which of these best describes a Statement of Financial Position?

1. A listing of balances

2. A statement of assets

3. A record of closing entries

4. An account proving the books balance

6. Which one of the following categories of account is credited when it is decreased?

1. Revenue

2. Expenses

3. Liabilities

4. Source of funds

7. Given the figures showing: Sales $8,200, Opening Inventory $1,300, Closing Inventory $900, Purchases $6,400, Carriage Inwards $200, the Cost of Goods Sold figure is:

1. $6,800

b. $6,200

c. $7,000

d. Another Figure

8. Carriage inwards is charged to the trading account because:

2. It is not part of motor expenses

b. It is an expense connected with buying goods

c. It should not go in the statement of financial position

d. Carriage outwards goes in the profit and loss account