FINANCIAL ACCOUNTING

MULTIPLE CHOICE QUESTIONS

Question 1

Indicate by choosing the correct option whether the following statement is true or false:

Office furniture purchased on credit will be recorded in the purchases journal.

True

False

Question 2

Indicate by choosing the correct option whether the following statement is true or false:

A debit balance in the VAT control account at the end of a financial period, will be disclosed as a current liability on the statement of financial position of an entity

True

False

Question 3

Indicate by choosing the correct option whether the following statement is true or false:

The bank statement of HS Stores has a unfavourable balance of R5 000 on 30 June 20.1. When preparing the bank reconciliation statement, the bookkeeper of HS Stores entered the unfavourable balance of R5 000 on the credit side of the bank reconciliation statement as at 30 June 20.1.

True

False

Question 4

The total of the sales returns column in the sales returns journal will be posted to the in the general ledger.

A. credit side of the sales returns account

B. credit side of the credit losses account

C. debit side of the credit losses account

D. debit side of the sales returns account

E. debit side of the trade receivables control