vi. The Sales Journal is best described as: A. Part of the double entry system B

Question

vi. The Sales Journal is best described as:

A. Part of the double entry system
B. Containing customers’ accounts
C. Containing real accounts
D. A list of credit sales

vii. Of the following, which are Personal Accounts?

i. Buildings
ii. Wages
iii. Accounts receivable
iv. Accounts payable

A. i and iv only
B. ii and iii only
C. iii and iv only
D. ii and iv only

viii. A business sold 25 items on credit at $12 each, less 331/3% trade discount. Four of these items are returned. What is the value of the credit note to be issued?

A. $48
B. $36
C. $30
D. $32

ix. Working capital is a term meaning:
A. The amount of capital invested by the proprietor
B. The excess of the current assets over the current liabilities
C. The capital less drawings
D. The total of fixed assets minus current assets

x. If the owner takes goods for own use, the journal to record this under the periodic inventory system would:

A. Debit Drawings, credit Purchases
B. Debit Purchases; credit Drawings
C. Debit Drawings; credit Merchandise inventory
D. Debit Sales; credit Merchandise inventory

xi. If $500 was shown added to purchases instead of being added to a fixed asset:

A. Net profit would be understated
B. Net profit would be overstated
C. It would not affect net profit
D. Both gross and net profits would be understated

xii. Given cost of goods sold $16,000 and gross profit of 20%, then sales would be:

A. $20,160
B. $13,600
C. $21,000
D. None of these

xiii. If beginning inventory is $3,000, closing inventory is $5,000, sales $40,000 and gross profit 20%, then inventory turnover is:

A. 8 times
B. 7.5 times
C. 5 times
D. 6 times

xiv. When accounting for partnerships, any loss on revaluation is:

A. Credited to old partners in old profit-sharing ratios
B. Credited to new partners in new profit-sharing ratios
C. Debited to old partners in old profit-sharing ratios
D. Debited to new partners in new profit-sharing ratios

xv. A company wishes to pay out all available profits as dividends. Net profit is $26,600. There are 20,000, 8% preference shares of $1 each, and 50,000 ordinary shares of $1 each. $5,000 is to be transferred to an appropriation account. What ordinary dividends are to be paid, in percentage terms?

A. 20%
B. 40%
C. 10%
D. 60%

Explanation / Answer

5) B. Containing customers’ accounts 6) C. iii and iv only 7) A. $48 9) B. The excess of the current assets over the current liabilities 10) C. Debit Drawings; credit Merchandise inventory 11) D. Both gross and net profits would be understated 12) B. $13,600 13) B. 7.5 times 14) A. Credited to old partners in old profit-sharing ratios 15) D. 60%

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.