Multiple choice questions (1 mark each) For each of the parts (1) to (5) below there are four possible answers A B, C and D. Choose the one you consider correct and write your answer in front of each question in the answer sheet provided. 1. Which of the folowing is not entered in the cash book? a) Bought goods for cash b) Sold goods to Victoria on account c) Purchased goods and paid with a credit card d) All of the above 2. Which of the folowing would not appear in the balance sheet? a) Carriage inwards b) Drawings c) Machinery d) Money owed by the firm to suppliers 3. Gross Profit is: a) Excess of sales over costof goods sold b) Sales less purchases c) Cost of goods sold plus Opening inventory d) Net profit les s expenses of the period 4. What is the purpos e of accounting? a) to ensure the cash book balance agrees with the bank statement b) to know how long trade receivables take to pay c) to prepare the financial statements of the business d) to write up all the ledger accounts 5. Albert maintains a provision for doubtful debts account. Where is the closing balance on the account included in the financial statements? a) as an expense in the income statement b) as a revenue in the income statement c) in the current assets section of the statement of financial position d) in the current liabilities section of the statement of financial position