58.Credit notes issued by us will be entered in our

A.Sales Account

B.Returns Inwards Account

C.Returns Inwards Journal

D.Returns Outwards Journal.

E.None of the above

59. The total of the Returns Outwards Journal is transferred to

A.The credit side of the Returns Outwards Account

B.The debit side of the Returns Outwards Account

C.The credit side of the Returns Outwards Book

D.The debit side of the Purchases Returns Book.

E. None of the above

60. We originally sold 25 items at 12 each, less 331/3 per cent trade discount. Our customer now returns 4

of them to us. What is the amount of credit note to be issued?

A.48

B.36

C. 30

D.32

E. None of the above

61. Which of the following is a liability?

A. machinery

B. accounts payable from goods

C. motor vehicles

D. cash at bank

62. If an expense has been incurred but not yet paid, which of the following statements is correct?

A. Expenses account needs to be credited.

B. Expenses account needs to be debited.

C. The expenses accured account need to be debited.

D. The expenses in advance account needs to be debited.

63. Which of the following are correct?

Accounts

To record

Entry in the account

I. Assets

an increase

a decrease

Debt

Credit

II.Capital

an increase

a decrease

Debit

Credit

III.Liabilities

an increase

a decrease

Credit

Debit

A. I and II only.

B. II and III only.

C. I and III only.

D. I, II and III only.

64. Which of the best describes a balance sheet?

A. An account proving the book balance

B. A record of closing entries

C. A listing of balances

D. A statement of assets.

65. 'Posting' the transactions in the bookkeeping means

A. Making the first entry of a double entry trasaction

B. Entering items in a cash book

C. Making the second entry of a double entry transaction

D. Something other than the above

66. Discounts received are

A. Deducted when we receive cash

B. Given by us when we sell goods on credit

C. Deducted by us when we pay our accounts

D. None of these

67. What is the effect of accrued revenues on the statement of financial position?

A. Increase in current asset

B. Increase in current liability

C. Decrease in current asset

D. Decrease in current liability.

68. When the financial statements are prepared, the Bad Debts Account is closed by a transfer to the

A. Balance Sheet

B. Profit and Loss Account

C. Trading Account

D. Allowance for Doubtful Debts is created

69. The journal is

A. Part of the double entry system

B. A supplement to the Cash Book

C. Not part of the double entry system

D. Used when other journals have been mislaid

70. Errors are corrected via the journal because

A. It saves the bookkeeper's time

B. It saves entering them in the ledger

C. It is much easier to do

D. It provides a good record explaining the double entry records.

71. If the two total of trial balance do not agree, the differences must be entered in

A. The Income Statement

B. A Suspense Account

C. A Nominal Account

D. The Capital Account

72. Transactions are initially recorded in the

A. General Ledger.

B. Balance Sheet

C. General Journal

D. Trial Balance

73. Is it true that the trial balance totals should agree?

A. No, there are sometimes good reasons whey they differ

B. Yes, except where the trial balance is extracted at the year end

C. Yes, always

D. No, because it is not a balance sheet