1) Balance as per cashbook 2, 970
Bank Charges 220
Unpresented cheques 3, 950
Uncredited cheques 4, 178
Direct debit by bank 1, 0000
Determine the balance as per bank statement.
- A. # 1,978
- B. # 1962
- C. # 1,522
- D. # 2,522
2) The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm’s capital?
- A. #184, 000
- B. #196,500
- C. #212,000
- D. #168,500
3) The major advantage of the journal proper is that it
- A. helps in the preparation of the balance sheet
- B. prevents fraud and theft of item of the business
- C. serves as a book of instruction to the bookkeeper
- D. help the banking industry to be efficient
Departments K Y
Opening 2,500 800
Purchases 120,000 100,000
Sales 180,000 200,000
Salary 8,000 30,000
Closing stock 3,000 1,500
Rate expenses of 1,500 are apportioned in the ratio 1:2
4) The gross profit for K is
- A. # 60,700
- B. #23,500
- C. #60,500
- D. #82,500
5) One of the objectives of accounting is that it can be used for
- A. business decision making
- B. due process in business
- C. motivating employees
- D. determining the work force
6) The ratio that gives the indication of the efficiency of a firm’s sales with respect to cost of goods sold is a
- A. return on capital employed
- B. gross profit margin
- C. net profit margin
- D. return on equity
7) The instrument used in analysis and interpretation of financial statement is the
- A. accounting ratios
- B. income and expenditure extract
- C. balance sheet extract
- D. found accounting
8) An item in the balance sheet of a limited liability company is
- A. accrued expenses
- B. lighting and heating
- C. salaries and wages
- D. general expenses
9) The documents that provide instant information to firms on their tranactions with banks are
- A. bank statement and debit note
- B. cheque book and cashbook
- C. cheque stub and deposit slip
- D. payslip and credit invoice
10) Which of the following is the capital reserve of a company?
- A. Accumulated depreciation
- B. Retained profit
- C. Share premium
- D. Loss on forfeited shares
