Accounting for Non-Accountants 10th – Online Material
Multiple choice questions for Accounting
for Non-Accountants 10th edition
Set 4 – 20 questions, answers in bold.
1 Sale of goods on credit to E Wardle should be recorded as:
A
B
C
D
Debit
Sales
Sales
E Wardle
Income statement
Credit
E Wardle
Income statement
Sales
Sales
2 Credit purchases by Olive that are returned to Wosien should be entered
in the accounts of Wosien as:
A
B
C
D
Debit
Wosien
Returns inwards
Returns inwards
Olive
Credit
Returns outwards
Wosien
Olive
Returns outwards
3 Which of the following statements are TRUE about errors and suspense
accounts?
1. All corrections should first of all be entered into the journal before
posting to the ledgers.
2. Once the balance on the suspense account is zero, no further errors
must be present.
3. To correct a reversal of entries we need to enter double the amount
on the correct side of each account.
A 1 and 2
B 1 and 3
C 1 only
D 1, 2 and 3
4 What is the closing balance on the following account as at 31 May 2021?
L Cockerton
May 1
Balance b/d
200
May 21
Cash
350
May 7
Sales
650
May 22
Returns in
175
A £325 debit
B £325 credit
C £400 credit
D £400 debit
1
2
Accounting for Non-Accountants 10th – Online Material
5 Previously a firm purchased goods from Nutt on credit. A correct entry
to record the firm settling its account with Nutt could be:
A
B
C
D
Debit
Nutt
Nutt
Returns outwards
Bank
Credit
Bank
Returns outwards
Nutt
Nutt
6 Buying Inventory on credit has the following effect on assets and
liabilities:
A
B
C
D
Effect on assets
Increase Inventory
Decrease Inventory
Increase Inventory
Decrease Inventory
Effect on liabilities
Increase Trade payables
No effect
No effect
Increase Trade payables
7 The amount owed by Bryony to suppliers at the start of the period was
£4,500. During the period she makes credit purchases worth £87,200
and makes payments out of her bank account totalling £102,000 which
mainly related to settling amounts owing to suppliers – but £15,000 of
this total relates to private expenses.
What would be the balance on Bryony’s purchases ledger control
account for the end of the period?
A £4,700
B £19,300
C £19,700
D £10,300
8 Equipment bought on credit from Prince Ltd had to be retuned due
to its unsuitability. The correct entry to record this in the accounts
would be:
A
B
C
D
Debit
Equipment
Prince Ltd
Returns outwards
Prince Ltd
Credit
Prince Ltd
Returns outwards
Prince Ltd
Equipment
9 Harold has a balance of £12,500 on his sales ledger at the end of the
current month. What does this mean?
A Harold has sold £12,500 of goods during this month
B Harold has sold £12,500 of good on credit during this month
C Harold is owed £12,500 by customers at the end of the month
D Harold owes £12,500 to suppliers at the end of the month.
Accounting for Non-Accountants 10th – Online Material
10 What would be the balance on the following account if balanced on
April 20?
S Grainger
April 1
Balance b/d
300
April 20
Cash
April 27
Sales
550
April 22
Returns in
250
75
A £75 debit
B £625 debit
C £75 credit
D £50 debit
11 What is the correct double entry to record receiving a cheque for rent
from the tenant who rents the property?
A
B
C
D
Debit
Rent
Rent
Tenant
Bank
Credit
Bank
Tenant
Rent
Rent
12 The total sales for a period of time what be:
A All goods and other assets sold
B Money received from sale of goods
C All credit and cash sales for that period
D All assets sold for cash
13 Assuming no returns outwards or carriage inwards, the cost of goods
sold will be equal to:
A Sales less gross profit
B Closing inventory less purchases plus opening inventory
C Opening inventory plus purchases plus closing inventory
D Purchases plus closing inventory less opening inventory
14 Common features of a current asset would not include:
A Easy conversion into cash
B Use as part of the firm’s operations
C Not bought for resale
D Likely to change before the next accounting period is over
3
4
Accounting for Non-Accountants 10th – Online Material
15 Valuing any closing inventory at cost is an application of which
concept:
A Materiality
B Realisation
C Prudence
D Consistency
16 Given the following data: Purchases £3,500, Returns outwards £300,
Returns inwards £150, Carriage outwards £830, Carriage inwards
£260, Opening Inventory £935, and closing Inventory £1,100.
The value of the cost of goods sold is:
A £3,295
B £4,015
C £3,745
D £3,445
17 Yates owed his suppliers £5,324 at the start of the period. During the
period he made credit purchases of £78,999 and made payments to
suppliers totally £79,555.
What is the value of outstanding amounts owing to suppliers at the
end of the period?
A £556
B £5,880
C £4,768
D £5,324
18 Bernard is carrying out a reconciliation of his sales ledger. He needs to
make correcting entries due to the following errors:
(1) An invoice for £45 was entered into the sales daybook as £54.
(2) Discounts allowed of £32 was missed out of entries.
(3) A receipt from Henson for £11 was credited to the account of
Henderson.
Which of the corrections would require an amendment made to the
general ledger?
A 1, 2 and 3
B 1 and 2
C 1 and 3
D 2 and 3
Accounting for Non-Accountants 10th – Online Material
19 The following ledger balance make up a company’s trial balance:
What is the total of the debit column of the trial balance?
Sales
Purchases
Trade payables
Trade receivables
Capital
Drawings
£
354,532
231,341
6,535
7,657
125,000
14,145
What is the total of the credit column of the trial balance?
A £253,143
B £486,067
C £375,212
D £487,189
20 Consider the following account and ascertain which of the statements
below the account is not true.
Capital account
2018
£
2018
£
Dec 31 Drawings
3,000
Jan 1
Dec 31 Balance c/d
7,750
May 31 Bank
Balance b/d
Dec 31 Income statement
10,750
8,500
500
?
10,750
A Capital has decreased between 1 Jan 2018 and December 31 2018
B Drawings made during the year will mean that the profits will be
reduced
C Net profits of £1,750 have been earned during the year of 2018
D The proprietor contributed more of his own private resources to the
business
5