6. Debit Note is a document that is A. B. C. D. sent by the business to the supplier for goods purchased by cash. sent by the business to the supplier upon returning goods. sent by the business to the customer when the customer returns goods sent by the business to the customer for goods sold on credit. 7. Insurance paid in advance will be recorded as A B. C. D. accrued expenses prepaid expenses accrued revenue prepaid revenue 8. Capital expenditure is A. B. C. D. money spent on buying non-current assets and the assets are not for resale. an expense that is incurred in the purchase of goods for resale. the costs of running the business on a day to day basis. the extra capital paid in by the proprieter. 9. A bank reconciliation statement is a statement A. B. C. D. drawn up by the business to verify the cash book balance with the bank statement balance. drawn up by the bank to verify the cash book. sent by the bank when an error has been made. sent by the bank when the account is overdrawn. 10. The correct journal entry to record purchase of inventory on credit based on perpetual inventory system is: A. B. C. D. Debit Cost of goods sold Inventory Account Payables Account Receivables Credit Account Payables Account Payables Inventory Sales