Ltd uses a subsidiary ledger and control account system for its accounts receivable. At the end of the accounting period a listing of customers' accounts is prepared from the subsidiary ledger. The purpose of this listing is to:

	a.	Check the amount that should be posted to the accounts receivable control account
	b.	Determine whether the debits equal the credits in the subsidiary ledger
	c.	Prove that the subsidiary ledger agrees with the control account
	d.	Provide information necessary for trial balance preparation
	e.	All of the above

Which is not an advantage of a Perpetual inventory system when compared to a Periodic inventory system?

	a.	Provides reordering information
	b.	Allows cost of goods sold to be calculated at any time
	c.	A stock-take does not have to be carried out
	d.	Provides a current and continuous record of all inventory transactions
	e.	Allows stock losses to be identified

the term to describe any event of an economic nature occurring between two entities is:

	a.	Contract
	b.	Account
	c.	Agreement
	d.	Transaction
	e.	Deal

A chronological record of all the transactions of an entity is provided in the:

	a.	Income Statement
	b.	Worksheet
	c.	Journal
	d.	Balance Sheet
	e.	Statement of Changes in Equity

lets say there are no Drawings made by the Owner of the business and no contributions of Capital were made in either Cash or Inventory, a Net Profit could be earned in an accounting period, only if the following occurs:

	a.	Total liabilities decrease during the period
	b.	Total liabilities increase during the period
	c.	Total assets exceed liabilities
	d.	Net assets increase during the period
	e.	Total assets increase during the period

Ltd had the following transactions. Which transaction represented an expense for August, 2020 under the accrual basis of accounting?

	a.	Purchased a computer for $9600 cash in August.
	b.	Paid $57 600 in August for settlement of a loan obtained ten months earlier.
	c.	Paid $5520 in August for repair work performed on its delivery van in July.
	d.	The proprietor withdrew $4620 worth of Inventory from the business in the month of August for private use.
	e.	Purchased $750 of petrol on credit in August for the delivery van. The account will be paid in the month of October.

Columns for the items Discount Received and Discount Allowed can be found in which of the following Journals?

	a.	Cash Payments and Cash Receipts
	b.	Sales and Purchases
	c.	General, Sales and Purchases
	d.	Purchases, Sales, Cash Receipts, Cash Payments and General
	e.	Cash Receipts, Cash Payments, Sales and Purchases

financial reports intended to serve the diverse needs of a variety of user groups who are unable to obtain their own accounting information are known as:

	a.	Directors reports and Internal Control reports
	b.	Auditors reports
	c.	Internal Management reports and Directors reports
	d.	General-purpose financial reports
	e.	Specific-purpose financial reports

In a manual system, which of the following is incorrect:

	a.	Credit Purchases are recorded in the Purchases Journal
	b.	Credit Sales are recorded in the Sales Journal
	c.	Cash Purchase of a Truck is recorded in the General Journal
	d.	Sale of an Office Building on credit is recorded in the General Journal
	e.	Cash Sales are recorded in the Cash Receipts Journal

comparing the operation of a manual accounting system with a computerised system, which of the following is not correct?

Step in the accounting cycle Manual System Computerised System

	a.	Journalise transactions Manual Automatic
	b.	Prepare financial reports Manual Automatic
	c.	Post to ledger accounts Manual Automatic
	d.	Prepare closing entries Manual Automatic
	e.	Prepare to trial balance Manual Automatic