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. 
B. 
C. 
D. 
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. 
B. 
C. 
D. 
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. 
B. 
C. 
D. 
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.
- A cheque that Sally paid into the bank for $400 is still outstanding.
- A cheque for $60 paid by Sally to Molly has not yet been presented.
- Sally has forgotten to record a cash withdrawal of $30.
- 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. 
B. 
C. 
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. 
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. 
B. 
A crossed cheque made out to the person presenting it
C. 
An account payee cheque paid in by the named person
D. 
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. 
B. 
C. 
D. 
14.
Which method of payment would be used to make an immediate internet purchase?
A. 
B. 
C. 
D. 
15.
Which of the following is a capital expenditure?
A. 
A debt owed to a supplier
B. 
C. 
The purchase cost of a new machine
D. 
16.
The following information has been extracted from a ledger's wages records for April.
- Employee's pension contributions $783
- Gross basic wages $10,163
- Income tax $2,150
- 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. 
B. 
C. 
D. 
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. 
B. 
C. 
D. 
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. 
B. 
C. 
D. 
20.
Which of the following are used in determining bad debts?
A. 
An aged payables analysis
B. 
An aged receivables analysis
C. 
D. 
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. 
B. 
C. 
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. 
B. 
C. 
D. 
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. 
B. 
C. 
D.