Recording Financial Transactions: Trivia Quiz

38 Questions | By Sameerhussain27 | Last updated: Mar 22, 2022 | Total Attempts: 1275

Questions

Settings

Create your own Quiz

Recording Financial Transactions: Trivia Quiz - Quiz

Recording financial transactions: trivia quiz. For a transaction to be complete there are some documents that need to be provided before it is recorded in the financial statements. Do you know what a remittance advice is and its importance when it comes to a specific debtors account? This quiz will test you on different transactions and how they flow before being recorded in different books of accounts. Do give it a try!

Questions and Answers

1.

Kew has an overdraft of $4,400 at the start of June. The following four transactions occurred during June. Kew allows its customers up to 60 days to pay their invoices. 3 June: Kew sells goods worth $10,000 on credit to a customer who always takes the full credit period. 10 June: Kew pays a supplier $8,000. 20 June: Kew sells goods worth $12,000 for cash and allows a 5% discount. 23 June: Cash is received from a customer who has been in dispute with Kew. The original invoice was for $6,000, but Kew has agreed to accept half the invoice value to settle the dispute. How much does Kew have in the bank at the end of June?
- A.
  
  $2,000
- B.
  
  $2,600
- C.
  
  $10,800
- D.
  
  $12,000
2.

Victoria & Co wish to buy goods from Paddington & Co. Which of the following is the most likely flow of documents to complete the purchase?
- A.
  
  Purchase order, delivery note, goods received note, cheque requisition, invoice
- B.
  
  Purchase order, delivery note, goods received note, invoice, cheque requisition
- C.
  
  Goods received note, purchase order, delivery note, invoice, cheque requisition
- D.
  
  Purchase order, goods received note, delivery note, cheque requisition, invoice
3.

Which of the following is least likely to be an obligation of a bank towards its customer?
- A.
  
  To use a professional level of care and skill
- B.
  
  To provide confirmation of the balance on the account at any time at the request of the customer
- C.
  
  To provide a statement covering a period showing the transactions which have occured during that period
- D.
  
  To provide a statement detailing the profits the bank has made with the money the customer has deposited
4.

Which of the following is not an effective security procedure?
- A.
  
  A key must be inserted into the cash register before it will operate. Keys are held by authorized personnel
- B.
  
  Cash is counted by a responsible person who works on the cash register
- C.
  
  The cash reconciliation should be performed by a reponsible person who neither operates the cash register nor cpunts the cash
- D.
  
  Cash should be banked as promptly as possible
5.

Which documents list the invoices, credit notes, and amounts paid and is sent from a supplier to customers monthly?
- A.
  
  Delivery note
- B.
  
  Purchase order
- C.
  
  Quotation
- D.
  
  Statement
6.

Pimlico & Co owe Vauxhall Ltd for some goods it recently bought. Pimlico & Co are setting the invoice early and are getting a discount. What is the correct double entry for this in Pimlico & Co's books?
- A.
  
  Debit Vauxhall Ltd, Credit Bank, Credit Discount received
- B.
  
  Debit Vauxhall Ltd, Debit Dsicount received, Credit Bank
- C.
  
  Debit Bank, Credit Discount allowed, Credit Pimlico $ Co
- D.
  
  Debit Bank, Dedit Discount allowed, Credit Pimlico $ Co
7.

The opening balance on 1 June on Northolt's receivables ledger showed total amounts owed as $6,478. During June Northolt made sales of $53,998, half of these sales were for cash. At the end of June Northolt's customers owed $10,492. How much cash did Northolt receive from its customers during June?
- A.
  
  $58,012
- B.
  
  $49,984
- C.
  
  $31,013
- D.
  
  $22,985
8.
Sally calculates her bank balance to be $160 positive, but her bank statement shows a different amount. Consider the following items and calculate the balance on Sally's bank statement.
1. A cheque that Sally paid into the bank for $400 is still outstanding.
2. A cheque for $60 paid by Sally to Molly has not yet been presented.
3. Sally has forgotten to record a cash withdrawal of $30.
4. Sally's bank statement shows the bank has deducted charges of $15 from her account.
9.

What legislation requires goods sold to be of satisfactory quality?
- A.
  
  Contract law
- B.
  
  Data protection law
- C.
  
  Document retention law
- D.
  
  Sale of goods legislation
10.

Which of the following is revenue expenditure in a firm which has a large fleet of motor vehicles?
- A.
  
  Purchase of a new delivery van
- B.
  
  Redecorating the transport manager's office
- C.
  
  Paying the road fund licenses for the fleet of vehicles.
- D.
  
  Purchase for a new exhaust for a van
11.

What is the purpose of remittance advice?
- A.
  
  To pay a supplier
- B.
  
  To remind a customer to pay
- C.
  
  To match a customer's payment with the invoice
- D.
  
  To send goods back to a supplier
12.

Which of the following will a bank refuse to accept?
- A.
  
  An unsigned cheque
- B.
  
  A crossed cheque made out to the person presenting it
- C.
  
  An account payee cheque paid in by the named person
- D.
  
  A large amount in notes
13.

There has been a break-in at your office and money has been stolen from the petty cash tin, which now contains only 37 cents in coins. There is a petty cash voucher in the tin for the month to date totaling $237.41. The petty cash book shows that at the start of the month, there was a balance of $74.50 in petty cash and that on the first day of the month the petty cash balance was increased to $400, under an imprest system. How much money has been stolen from petty cash?
- A.
  
  $162.22
- B.
  
  $162.96
- C.
  
  $236.72
- D.
  
  637.04
14.

Which method of payment would be used to make an immediate internet purchase?
- A.
  
  Cash
- B.
  
  Cheque
- C.
  
  Credit card
- D.
  
  Credit transfer
15.

Which of the following is a capital expenditure?
- A.
  
  A debt owed to a supplier
- B.
  
  A bank loan
- C.
  
  The purchase cost of a new machine
- D.
  
  Employee salary costs
16.
The following information has been extracted from a ledger's wages records for April.
1. Employee's pension contributions $783
2. Gross basic wages $10,163
3. Income tax $2,150
4. Employer's pension contribution $1,011
What will be the total charge for wage in the final accounts?
17.

Which of the following categories of account would you accept to have a debit balance when you extract a trial balance from the nominal ledger?
- A.
  
  Asset accounts
- B.
  
  Liability accounts
- C.
  
  Income accounts
- D.
  
  Expense account
18.

The balances on an accounts payable control account at the beginning of April is $18,420. During the month the business made purchases on credit $27,400. Unpaid payables at the month-end were $9,250. During the month credit notes for $2,610 were received. What payments were made to accounts payables during the month?
- A.
  
  $15,260
- B.
  
  $20,810
- C.
  
  $33,960
- D.
  
  $39,180
19.

The entries in an accounts receivable control account are: Sales $250,000 Bank $225,000 Returns $2,500 Bad debts $3,000 Returned unpaid cheque $3,500 Contra accounts payable account $4,000 What is the closing balance on the accounts receivable control account (Note: There is no opening balance.)
- A.
  
  $12,000
- B.
  
  $19,000
- C.
  
  $25,000
- D.
  
  $27,000
20.

Which of the following are used in determining bad debts?
- A.
  
  An aged payables analysis
- B.
  
  An aged receivables analysis
- C.
  
  A bank statement
- D.
  
  A supplier statement
21.

A business that is registered for sales tax purchases goods from a supplier. How would the purchase be recorded in the general ledger?
- A.
  
  Debit Purchases, Credit Accounts payables, Credit sales tax
- B.
  
  Debit Purchases, Credit Accounts payables, Dedit sales tax
- C.
  
  Credit Purchases, Debit Accounts payables, Credit sales tax
- D.
  
  Credit Purchases, Debit Accounts payables, Debit sales tax
22.

Which of the following is shown by the balance sheet on a receivable control account?
- A.
  
  It is the amount by which credit sales have exceeded payments from credit customers in the period
- B.
  
  It is the amount of unpaid customers invoces at the end of the month
- C.
  
  It is the amount by which total receivables have increased during the month
23.

A supplier of computer equipment allows the customers to deduct 3% from the invoice amount if they pay within 14 days of the invoice date. This is an example of:
- A.
  
  A bad debt
- B.
  
  A trade discount
- C.
  
  A cash transaction
- D.
  
  An early settlement discount
24.

Michael is a salesperson who is paid according to the number of sales he makes. His salary is a percentage of gross sales. By what method of remuneration is Michael paid?
- A.
  
  Bonus
- B.
  
  Commission
- C.
  
  Overtime
- D.
  
  Salary
25.

A summary of the transactions of Witney & Co. which is registered for sales tax at 17.5%, shows the following for the month of November 20X4: Outputs $122,610 (inclusive of sales tax) Input $78,857 (exclusive of sales tax) At the beginning of the month, Witney owed $7,200 of sales tax and during November paid $6,800. At 30 November 20X4 the amount of sales tax owing is:
- A.
  
  $4,461
- B.
  
  $4,861
- C.
  
  $9,000
- D.
  
  $9,400