MCQs Exam Review Sheet Variant 1

PAKISTAN INTERNATIONAL SCHOOL JEDDAH - ENGLISH SECTION
Academic Subject Name Section Date

Year
2022-2023 Accounting Y-9
CW
Chapter 1-6 HW Obtained Marks
1 Lilly sold goods on credit to Farr. Some of the goods are damaged and Farr returns them to
Lilly.
Which document is sent by Lilly to Farr?
A statement of account
B credit note
C debit note
D invoice
2 A trader buys television sets for re-sale from Astra on credit.
Which entries record the transaction in the trader’s ledger?
Account debited Account credited

A Astra Purchases
B Astra Television Sets
C Purchases Astra
D Television Sets Astra
3 A debit entry in the cash account is matched by a credit entry in T. Leonie’s account. What do
these entries record?
A Goods sold to T. Leonie for cash

B Payment of cash to T. Leonie
C Purchase of goods from T. Leonie for cash
D Receipt of cash from T. Leoine
4 Where are the expense accounts, revenue accounts and purchases account found?
Sales Purchases Nominal

ledger ledger ledger
A ✔
B ✔
✔
C
✔ ✔ ✔
D
5 Why does a business prepare a trial balance?
A to provide a list of all its assets and liabilities

B to calculate its profit or loss
C to check the accuracy of its ledger accounts
D to check its bank balance
6 The totals of a trial balance do not agree. Which type of error causes this?
A A compensating error
B An error of addition
C An error of commission
D An error of principle
7 What should the owner of a business do to find if there has been an improvement in the
financial position of his business?
A compare this year’s balance sheet with last year’s balance sheet
B compare this year’s Profit and Loss Account with last year’s Profit and Loss Account
C compare this year’s balance sheet with that of a similar business
D compare this year’s Profit and Loss Account with that of a similar business
8 The owners of a business require a statement of the financial position of their business. Which
accounting statement will provide the necessary information?
A Balance sheet
B Capital account
C Cash book
D Profit and Loss Account
9 How do an owner’s cash drawings affect the business’s assets and liabilities?
assets liabilities
A decrease decrease
B decrease increase
C increase decrease
D increase increase
10 A business has these assets and liabilities:
Motor vehicles 10000
Creditors 2000
Stock 3000
Bank overdraft 1500
Debtors 1000
Cash 500
What is the capital?
A $10000
B $11000
C $14000
D $14500
11 X buys goods on credit form Y. Some goods are defective and X returns them to Y.
Which document is sent by X to Y?

A advice note
B credit note
C debit note
D invoice
12 X bought goods on credit from her supplier. She received a trade discount of 20%. The amount
she paid after deducting the discount was $2000.
What was the original value of the goods before the discount was deducted?
A $1500 B $1600 C $2400 D $2500

13 A business receives a cheque for $1150 from a customer in full settlement of a debt of $ 1200.
How should this be recorded in the business’s books of account?
debit credit
A bank $1200 customer $1200
B bank $1150 customer $1150
C bank $1150 customer $1200

discount allowed $50
D bank $1200 customer $1150

discount received $50
14 In which book of account is the Purchase account kept:
A Journal
B Nominal ledger
C Purchase journal
D Purchase ledger
15 Which is an error of omission?

A No entry has been made for the purchases of stationery by cheque.
B Purchase of stationery has been entered only in the Cash Book.
C Purchase of stationery has been entered only in the Stationery account.
D The stationery account has been missed out of the Trial Balance.
16 X is opening a business.
Why should she prepare final accounts.
A to calculate her profit or loss

B to calculate the amount owed by debtors
C to show her personal wealth
D to show whether the bank overdraft limit has been reached
17 Which of the following is a business asset?
A capital
B creditors
C debtors
D sales
18 Which of the following is a current liability?
A bank overdraft
B drawings
C five-year bank loan
D insurance
19 Which document is issued by a supplier when a customer returns goods?
A credit note
B debit note
C invoice
D statement of account
20 On 1 March the petty cash balance equaled the imprest amount of $150. During the month the
petty cash cashier spent $126 and received $4 from a member of staff for private telephone
calls.
How much will the petty cashier receive on 31 March to restore the imprest?
A $24 B $28 C $122 D $150

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PAKISTAN INTERNATIONAL SCHOOL JEDDAH - ENGLISH SECTION

Academic Subject Name Section Date

Which document is sent by Lilly to Farr?

2 A trader buys television sets for re-sale from Astra on credit.

Which entries record the transaction in the trader’s ledger?

Account debited Account credited

A Goods sold to T. Leonie for cash

Sales Purchases Nominal

5 Why does a business prepare a trial balance?

A to provide a list of all its assets and liabilities

C compare this year’s balance sheet with that of a similar business

Motor vehicles 10000

Bank overdraft 1500

What is the capital?

Which document is sent by X to Y?

A $1500 B $1600 C $2400 D $2500

How should this be recorded in the business’s books of account?

A bank $1200 customer $1200

B bank $1150 customer $1150

C bank $1150 customer $1200

D bank $1200 customer $1150

14 In which book of account is the Purchase account kept:

15 Which is an error of omission?

Why should she prepare final accounts.

A to calculate her profit or loss

18 Which of the following is a current liability?

19 Which document is issued by a supplier when a customer returns goods?

A $24 B $28 C $122 D $150

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