Recording Financial Transactions: Trivia Quiz

38 Questions | Total Attempts: 1275

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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

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