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Accounting
Multiple Choice Questions

Sources and recording of data

IGCSE and O level

➡️QUESTION⬅️

Which statements about book-keeping and accounting are correct?

1 Accounting is performed periodically rather than daily.
2 Accounting relies on having accurate book-keeping records.
3 Book-keeping includes the preparation of financial statements.
4 Book-keeping involves the recording of financial transactions.

A 1,2and4
B 1and3
C 2,3 and4
D 2and4

ANSWER A



➡️QUESTION⬅️

What is the main function of book-keeping?
A communicating information
B interpreting information
C recording information
D summarising information

ANSWER C



➡️QUESTION⬅️

What would be recorded by a debit entry in a ledger account?

A adecrease in an asset
Ban increase in a liability
C anincrease in an asset
D anincrease in capital employed

ANSWER C



➡️QUESTION⬅️

Which task would be carried out by a book-keeper?

A comparison of financial statements between years
B preparation of financial statements
C provision of information for decision-making
D recording financial transactions

ANSWER D



➡️QUESTION⬅️

Omar returned faulty goods to Yasmin, the supplier.

Which document did Omar send to Yasmin?

A credit note
B debit note
C invoice
D statement of account

ANSWER B


➡️QUESTION⬅️

What are examples of revenue receipts?

1 acheque received from the sale of a non-current asset at book value
2 a profit made on the sale of a non-current asset
3 a loan from a bank that is repayable in 2020
4 discounts received from credit suppliers for prompt payment

A 1and3
B tand4
C 2and3
D 2and4

ANSWER D



➡️QUESTION⬅️

Which document is used to inform employees of their social security/national insurance
contributions?
A clock card
B payroll register
C payslip
D time sheet

ANSWER C



➡️QUESTION⬅️

In April Meena sent Ralph invoices for $170, $240, $125 and a credit note for $63. In the same month Ralph sent Meena a debit note for $70 and a cheque for $107.

What was the balance on Meena’s account in Ralph's books on 1 May?

A $295 credit
B $295 debit
C $365 credit
D $365 debit

ANSWER C


➡️QUESTION⬅️

Which document shows employees the details of deductions made from their wages?
A clock card
B payslip
C time sheet
D wages sheet

ANSWER A


➡️QUESTION⬅️

A factory employee records his time of arrival and departure each day.

Which document is used for recording his hours of work?

A clock card
B payroll register
C time sheet
D wages sheet

ANSWER A


➡️QUESTION⬅️

Which document will a customer issue to inform a supplier of an overcharge?
A credit note
B debit note
C invoice
D statement of account

ANSWER B



➡️QUESTION⬅️

After receiving her bank statement Lyn updated her cash book.

Which items would reduce the overdrawn balance in the cash book?

1 bank interest received
2 credit transfer received
3. direct debit payment

A 1and2only
B 1and3only
C 1,2and3
D 2and3

ANSWER A


➡️QUESTION⬅️

Which transaction is recorded in the general journal?

A payment of cash into a business bank account
B purchase of a motor vehicle on credit
C receipt of a cheque from a customer
D sale of goods on credit

ANSWER B

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