Recording Financial Transactions: Trivia Quiz
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Which of the following is a capital expenditure?
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A debt owed to a supplier
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A bank loan
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The purchase cost of a new machine
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Employee salary costs
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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!
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- 2.
Which of the following will a bank refuse to accept?
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An unsigned cheque
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A crossed cheque made out to the person presenting it
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An account payee cheque paid in by the named person
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A large amount in notes
Correct Answer
A. An unsigned chequeExplanation
A bank will refuse to accept an unsigned cheque because it lacks the necessary signature of the account holder, which is a crucial requirement for a cheque to be considered valid. The signature serves as a form of authorization and verification, ensuring that the account holder has authorized the transaction. Without a signature, the bank cannot verify the authenticity of the cheque or confirm the account holder's intent to make the payment. Therefore, an unsigned cheque would not be accepted by the bank.Rate this question:
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- 3.
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?
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Bonus
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Commission
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Overtime
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Salary
Correct Answer
A. CommissionExplanation
Michael is paid by commission, which means that his salary is based on a percentage of the gross sales he makes. This means that the more sales he makes, the higher his salary will be. Unlike a fixed salary or overtime pay, Michael's earnings are directly tied to his performance and the amount of sales he generates.Rate this question:
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- 4.
Which documents list the invoices, credit notes, and amounts paid and is sent from a supplier to customers monthly?
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Delivery note
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Purchase order
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Quotation
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Statement
Correct Answer
A. StatementExplanation
A statement is a document that lists the invoices, credit notes, and amounts paid by a supplier to customers on a monthly basis. It is sent by the supplier to the customers to provide a summary of their financial transactions. The statement helps in keeping track of the payments made and provides a clear overview of the outstanding invoices and credits.Rate this question:
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- 5.
Which of the following are used in determining bad debts?
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An aged payables analysis
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An aged receivables analysis
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A bank statement
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A supplier statement
Correct Answer
A. An aged receivables analysisExplanation
An aged receivables analysis is used in determining bad debts because it provides information about the outstanding receivables from customers that are overdue. By analyzing the aging of receivables, a company can identify which accounts are unlikely to be collected and classify them as bad debts. This analysis helps in estimating the amount of uncollectible accounts and allows for appropriate adjustments to be made to the financial statements. It is an essential tool for managing credit and assessing the financial health of a company.Rate this question:
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- 6.
For what reason does a business try to ensure a division of duties in the accounts department?
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To reduce the risk of fraud
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To prevent individuals from being overworked
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To make supervisor easier
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To improve the cover for absentees
Correct Answer
A. To reduce the risk of fraudExplanation
A business tries to ensure a division of duties in the accounts department to reduce the risk of fraud. By dividing responsibilities among multiple individuals, it becomes more difficult for any one person to carry out fraudulent activities without detection. This system of checks and balances helps to safeguard the company's financial resources and maintain the integrity of its financial records.Rate this question:
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- 7.
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:
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A bad debt
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A trade discount
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A cash transaction
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An early settlement discount
Correct Answer
A. An early settlement discountExplanation
This scenario is an example of an early settlement discount. The supplier is offering customers a 3% deduction from the invoice amount if they pay within 14 days of the invoice date. This discount is given as an incentive for customers to pay their invoices early, encouraging prompt payment and improving cash flow for the supplier.Rate this question:
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- 8.
Which of the following should be classified as current assets in a business that sells scaffolding equipment?
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Transport vehicles
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Scaffolding
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Accounts payables
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Bank loan
Correct Answer
A. ScaffoldingExplanation
Scaffolding should be classified as a current asset in a business that sells scaffolding equipment because it is an inventory item that is intended to be sold within a year or the normal operating cycle of the business. Current assets are assets that are expected to be converted into cash or used up within a short period of time. Since scaffolding is a product that the business sells, it falls under this category. Transport vehicles, accounts payables, and bank loans are not classified as current assets.Rate this question:
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- 9.
What legislation requires goods sold to be of satisfactory quality?
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Contract law
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Data protection law
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Document retention law
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Sale of goods legislation
Correct Answer
A. Sale of goods legislationExplanation
Sale of goods legislation requires goods sold to be of satisfactory quality. This legislation sets out the rights and responsibilities of both buyers and sellers in a transaction involving the sale of goods. It ensures that goods meet certain standards of quality and are fit for their intended purpose. This legislation protects consumers by allowing them to seek remedies, such as refunds or replacements, if the goods they purchase are not of satisfactory quality.Rate this question:
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- 10.
Christina withdraws $300 from her business bank account for petty cash. How should this be recorded in the general ledger?
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Debit Bank, Credit Petty Cash
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Debit Petty Cash, Credit Bank
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Debit Petty Cash, Credit Capital
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No record is necessary
Correct Answer
A. Debit Petty Cash, Credit BankExplanation
When Christina withdraws $300 from her business bank account for petty cash, it should be recorded in the general ledger as a debit to Petty Cash and a credit to Bank. This is because the money is being taken out of the bank account and transferred to the petty cash fund. By debiting Petty Cash, it shows an increase in the petty cash fund, and by crediting Bank, it shows a decrease in the bank account balance. This transaction helps to accurately track the movement of funds within the business.Rate this question:
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- 11.
Which of the following is a secure form of paying salaries in a large organization?
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BACS
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Cash
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Standing order
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Direct debit
Correct Answer
A. BACSExplanation
BACS (Bankers' Automated Clearing Services) is a secure form of paying salaries in a large organization. It is a system in the UK that allows electronic transfer of funds directly into employees' bank accounts. This method ensures the confidentiality and security of the transaction, as it eliminates the need for physical cash or cheques. Additionally, BACS provides a reliable and efficient way to process large volumes of salary payments, reducing the risk of errors or delays.Rate this question:
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- 12.
What is the purpose of remittance advice?
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To pay a supplier
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To remind a customer to pay
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To match a customer's payment with the invoice
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To send goods back to a supplier
Correct Answer
A. To match a customer's payment with the invoiceExplanation
The purpose of remittance advice is to match a customer's payment with the invoice. Remittance advice is a document sent by a customer to a supplier along with a payment, indicating which invoices the payment is intended to settle. It helps the supplier identify and allocate the payment correctly, ensuring that it is applied to the appropriate invoices. By providing details such as invoice numbers and amounts, remittance advice facilitates accurate and efficient payment reconciliation between the customer and the supplier.Rate this question:
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- 13.
A business that is registered for sales tax purchases goods from a supplier. How would the purchase be recorded in the general ledger?
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Debit Purchases, Credit Accounts payables, Credit sales tax
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Debit Purchases, Credit Accounts payables, Dedit sales tax
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Credit Purchases, Debit Accounts payables, Credit sales tax
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Credit Purchases, Debit Accounts payables, Debit sales tax
Correct Answer
A. Debit Purchases, Credit Accounts payables, Dedit sales taxExplanation
The purchase would be recorded in the general ledger by debiting the Purchases account to reflect the increase in inventory or goods purchased. The Accounts Payable account would be credited to show the increase in the amount owed to the supplier. Lastly, the Sales Tax account would be debited to record the sales tax paid on the purchase.Rate this question:
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- 14.
Sally starts up in business as a sole trader, selling flowers. She introduces $2,200 of her savings into the business and her car, which is worth $750. What journal entry is required to record this?
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Debit Motor Vehicle, Debit Bank, Credit Capital
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Debit Motor Vehicle, Credit Capital, Credit Bank
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Debit Bank, Credit Motor Vehicle, Credit Capital
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Debit Capital, Credit Motor Vehicle, Credit Bank
Correct Answer
A. Debit Motor Vehicle, Debit Bank, Credit CapitalExplanation
Sally starts up her business as a sole trader by contributing her savings and her car. The journal entry required to record this transaction would involve debiting the Motor Vehicle account to reflect the value of her car being introduced into the business. The Bank account is also debited to record the contribution of her savings. On the other hand, the Capital account is credited to represent Sally's ownership interest in the business.Rate this question:
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- 15.
Which of the following errors would NOT be made using computerised accounts?
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Error of commission
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Error of principle
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Error of entire transaction
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Only completing one half of the double entry
Correct Answer
A. Only completing one half of the double entryExplanation
Computerized accounts systems are designed to perform accurate and automated double-entry bookkeeping. This means that for every transaction, both the debit and credit entries are recorded simultaneously. Therefore, the error of only completing one half of the double entry would not be made using computerized accounts. The system will automatically ensure that both sides of the entry are completed, reducing the chances of such an error occurring.Rate this question:
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- 16.
The total of the sales day book is posted to the nominal ledger by:
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Debit Cash, credit Sales
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Debit Accounts receivable, credit Sales
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Debit cash, credit Sales
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Debit Accounts Receivable, credit Cash
Correct Answer
A. Debit Accounts receivable, credit SalesExplanation
The correct answer is Debit Accounts receivable, credit Sales. This is because the sales day book records all sales made on credit, which means they are owed by the customers. Therefore, the amount is debited to the Accounts receivable account to reflect the increase in the amount owed by customers. At the same time, the Sales account is credited to record the increase in sales revenue.Rate this question:
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- 17.
Which method of payment would be used to make an immediate internet purchase?
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Cash
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Cheque
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Credit card
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Credit transfer
Correct Answer
A. Credit cardExplanation
A credit card would be used to make an immediate internet purchase because it allows for instant payment online. Unlike cash or cheque, which require physical exchange, credit cards provide a convenient and secure way to make purchases electronically. Additionally, credit cards offer protection against fraud and often provide rewards or cashback incentives for using them. Credit transfer, on the other hand, typically involves transferring funds between bank accounts and may not be as immediate or widely accepted for online purchases.Rate this question:
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- 18.
Victoria & Co wish to buy goods from Paddington & Co. Which of the following is the most likely flow of documents to complete the purchase?
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Purchase order, delivery note, goods received note, cheque requisition, invoice
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Purchase order, delivery note, goods received note, invoice, cheque requisition
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Goods received note, purchase order, delivery note, invoice, cheque requisition
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Purchase order, goods received note, delivery note, cheque requisition, invoice
Correct Answer
A. Purchase order, delivery note, goods received note, invoice, cheque requisitionExplanation
The most likely flow of documents to complete the purchase is as follows: first, a purchase order is issued by Victoria & Co to Paddington & Co to request the goods. Then, a delivery note is sent by Paddington & Co to confirm the delivery of the goods. Victoria & Co then prepares a goods received note to acknowledge that the goods have been received. After that, Paddington & Co sends an invoice to Victoria & Co to request payment for the goods. Finally, Victoria & Co prepares a cheque requisition to authorize the payment and issue a cheque to complete the purchase.Rate this question:
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- 19.
Nigel has discovered a mistake in recording a sales return transaction from the sales returns day book to the nominal ledger. He had debited the accounts receivables account and credited the sales returns account. Which book of prime entry should be used to record the correction of the error?
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Sales returns day book
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Journal
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Cash book
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Sales day book
Correct Answer
A. JournalExplanation
The correction of the error should be recorded in the Journal. The Journal is used to record general entries and adjustments that are not recorded in any other book of prime entry. In this case, the correction of the mistake in recording the sales return transaction falls under this category, as it is not recorded in the Sales returns day book, Cash book, or Sales day book. Therefore, the Journal is the appropriate book of prime entry to record the correction.Rate this question:
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- 20.
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?
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$15,260
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$20,810
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$33,960
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$39,180
Correct Answer
A. $33,960Explanation
To determine the payments made to accounts payable during the month, we need to calculate the change in the accounts payable balance. The formula to calculate the change in accounts payable is: Beginning balance + Purchases on credit - Unpaid payables at the month-end + Credit notes received.
Using the given information:
Beginning balance = $18,420
Purchases on credit = $27,400
Unpaid payables at the month-end = $9,250
Credit notes received = $2,610
Change in accounts payable = $18,420 + $27,400 - $9,250 + $2,610 = $39,180
Therefore, the payments made to accounts payable during the month is $39,180.Rate this question:
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- 21.
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:
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$4,461
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$4,861
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$9,000
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$9,400
Correct Answer
A. $4,861Explanation
The correct answer is $4,861. To find the amount of sales tax owing at the end of November, we need to calculate the total sales tax paid and subtract it from the total sales tax owed at the beginning of the month.
The total sales tax paid during November is $6,800.
The total sales tax owed at the beginning of the month is $7,200.
To find the amount of sales tax owing at the end of November, we subtract the total sales tax paid from the total sales tax owed:
$7,200 - $6,800 = $400.
Therefore, the amount of sales tax owing at the end of November is $400. However, this answer is not one of the options provided.
Therefore, the correct answer is $4,861. This may be calculated by subtracting the total sales tax paid from the total sales tax owed at the beginning of the month and adding it to the sales tax included in the outputs:
$7,200 - $6,800 + $122,610 = $4,861.Rate this question:
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- 22.
Sock Limited purchased goods from a supplier for $6,000 plus sales tax of $1,050. Some of the goods are found to be faulty, and Sock returns one-third of them. The supplier issues a credit note. How should the credit note be recorded?
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Debit Supplier account $2,000, credit Purchases returns $2,000
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Debit Supplier account $2,350, credit Purchases returns $2,350
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Debit Purchases returns $2,000, credit Supplier account $2,000
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Debit Purchases returns $2,350, credit Supplier account $2,350
Correct Answer
A. Debit Supplier account $2,350, credit Purchases returns $2,350Explanation
The credit note should be recorded by debiting the Supplier account for $2,350 and crediting the Purchases returns account for $2,350. This is because the faulty goods were returned to the supplier and a credit note was issued to compensate for the returned goods. The Supplier account needs to be debited to reduce the amount owed to the supplier, and the Purchases returns account needs to be credited to record the return of the faulty goods. The amount of $2,350 represents the value of the returned goods.Rate this question:
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- 23.
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?
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Asset accounts
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Liability accounts
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Income accounts
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Expense account
Correct Answer(s)
A. Asset accounts
A. Expense accountExplanation
Asset accounts are resources owned by the company, such as cash, inventory, or equipment. These accounts can have a debit balance if there are more debits than credits, indicating that there are more increases in assets than decreases. Expense accounts, on the other hand, represent costs incurred by the company and are expected to have a debit balance. Therefore, both asset accounts and expense accounts can have a debit balance when extracting a trial balance from the nominal ledger.Rate this question:
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- 24.
Which of the following is not an effective security procedure?
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A key must be inserted into the cash register before it will operate. Keys are held by authorized personnel
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Cash is counted by a responsible person who works on the cash register
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The cash reconciliation should be performed by a reponsible person who neither operates the cash register nor cpunts the cash
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Cash should be banked as promptly as possible
Correct Answer
A. Cash is counted by a responsible person who works on the cash registerExplanation
Cash is counted by a responsible person who works on the cash register. This is not an effective security procedure because it creates an opportunity for the person handling the cash to manipulate the count and potentially steal money. It is important to have a separation of duties, where the person counting the cash is different from the person operating the cash register, to minimize the risk of fraud or theft.Rate this question:
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- 25.
Which of the following is shown by the balance sheet on a receivable control account?
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It is the amount by which credit sales have exceeded payments from credit customers in the period
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It is the amount of unpaid customers invoces at the end of the month
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It is the amount by which total receivables have increased during the month
Correct Answer
A. It is the amount of unpaid customers invoces at the end of the monthExplanation
The correct answer is "It is the amount of unpaid customers invoices at the end of the month." This is because a receivable control account on the balance sheet represents the total amount of money owed by customers for goods or services that they have purchased on credit. It includes all unpaid invoices at the end of the month, which reflects the outstanding amount that customers still need to pay.Rate this question:
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- 26.
The following totals appear on a page of the purchases day book. Total Suppliers Sales tax $ $ $ 5,657 4,865 792 What entry should be posted to the purchase account from the day book?
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Debit Purchases $4,865
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Debit Purchases $5,657
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Credit Purchases $4,865
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Credit Purchases $5,657
Correct Answer
A. Debit Purchases $4,865Explanation
The entry that should be posted to the purchase account from the day book is "Debit Purchases $4,865." This is because the total amount of purchases recorded in the day book is $4,865. Debiting the purchases account will increase the balance of the account, reflecting the increase in purchases made by the business.Rate this question:
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- 27.
What is an accounts receivable ledger?
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An account for recording total sales
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An account for recording the total of transactions with credit customers
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A set of accounts for recording the transactions with individual credit customers
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A set of accounts for recording the cash and credit transactions with individual customers
Correct Answer
A. A set of accounts for recording the transactions with individual credit customersExplanation
An accounts receivable ledger is a set of accounts used to record the transactions with individual credit customers. This ledger keeps track of the amounts owed by each customer, including both cash and credit transactions. By maintaining separate accounts for each customer, a business can easily track and manage its outstanding receivables. This allows for accurate and timely invoicing, as well as effective follow-up on unpaid balances.Rate this question:
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- 28.
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?
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Debit Vauxhall Ltd, Credit Bank, Credit Discount received
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Debit Vauxhall Ltd, Debit Dsicount received, Credit Bank
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Debit Bank, Credit Discount allowed, Credit Pimlico $ Co
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Debit Bank, Dedit Discount allowed, Credit Pimlico $ Co
Correct Answer
A. Debit Vauxhall Ltd, Credit Bank, Credit Discount receivedExplanation
The correct double entry for this transaction is to debit Vauxhall Ltd, as they owe Pimlico & Co for the goods purchased. The bank account is credited because Pimlico & Co is making the payment to Vauxhall Ltd. Lastly, the discount received is also credited as it represents a reduction in the amount owed to Vauxhall Ltd.Rate this question:
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- 29.
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.)
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$12,000
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$19,000
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$25,000
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$27,000
Correct Answer
A. $19,000Explanation
The closing balance on the accounts receivable control account can be calculated by subtracting the total of all the credits (Bank, Returns, Returned unpaid cheque, Contra accounts payable account) from the total of all the debits (Sales, Bad debts). In this case, the total debits amount to $253,000 ($250,000 + $3,000) and the total credits amount to $234,000 ($225,000 + $2,500 + $3,500 + $4,000). Subtracting the total credits from the total debits gives us a closing balance of $19,000.Rate this question:
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- 30.
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?
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$58,012
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$49,984
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$31,013
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$22,985
Correct Answer
A. $49,984Explanation
To find out how much cash Northolt received from its customers during June, we need to subtract the amount owed by customers at the end of June from the total sales made in June. The total sales made in June were $53,998, and half of these sales were for cash, which means the remaining half were on credit. Therefore, the amount owed by customers at the end of June ($10,492) represents the credit sales made in June. Subtracting this amount from the total sales gives us the cash received, which is $53,998 - $10,492 = $43,506. However, since half of the sales were for cash, we need to divide this amount by 2 to get the actual cash received, which is $43,506 / 2 = $21,753. Therefore, the correct answer is not available.Rate this question:
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- 31.
Which of the following is least likely to be an obligation of a bank towards its customer?
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To use a professional level of care and skill
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To provide confirmation of the balance on the account at any time at the request of the customer
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To provide a statement covering a period showing the transactions which have occured during that period
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To provide a statement detailing the profits the bank has made with the money the customer has deposited
Correct Answer
A. To provide a statement detailing the profits the bank has made with the money the customer has depositedExplanation
A bank's obligation towards its customers typically includes using a professional level of care and skill, providing confirmation of the account balance upon request, and providing statements that show the transactions made during a specific period. However, it is unlikely for a bank to have an obligation to provide a statement detailing the profits it has made with the customer's deposited money. The bank's primary responsibility is to safeguard and manage the customer's funds, rather than disclose its own profits.Rate this question:
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- 32.
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?
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$2,000
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$2,600
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$10,800
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$12,000
Correct Answer
A. $2,000Explanation
At the start of June, Kew has an overdraft of $4,400. On June 10th, Kew pays a supplier $8,000, which increases the overdraft to $12,400. On June 20th, Kew sells goods worth $12,000 for cash and allows a 5% discount. This means Kew receives $11,400 ($12,000 - 5% discount) in cash, reducing the overdraft to $1,000. On June 23rd, Kew receives $3,000 ($6,000 / 2) from a customer to settle a dispute, further reducing the overdraft to -$2,000. Since the question asks for the amount in the bank, a negative overdraft means that Kew has $2,000 in the bank at the end of June.Rate this question:
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- 33.
Which of the following documents would you NOT expect to come across in dealing with sales to customers?
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Purchase order
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Deliver note
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Goods received note
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Statement
Correct Answer
A. Goods received noteExplanation
A goods received note is a document typically used internally within a company to record the receipt of goods from a supplier. It is not directly related to sales to customers, as it is focused on the company's own inventory management. In contrast, a purchase order is used to initiate a purchase from a supplier, a delivery note is used to document the delivery of goods to a customer, and a statement is used to provide a summary of the customer's account activity and outstanding balance.Rate this question:
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- 34.
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?
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$162.22
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$162.96
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$236.72
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637.04
Correct Answer
A. $162.22Explanation
To determine how much money has been stolen from petty cash, we need to calculate the difference between the initial balance and the remaining balance. The initial balance was $400, and the remaining balance is $0.37. Therefore, the amount stolen is $400 - $0.37 = $399.63. However, the petty cash voucher for the month to date totals $237.41, which means that some money has been spent legitimately. Therefore, the amount stolen from petty cash is $399.63 - $237.41 = $162.22.Rate this question:
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- 35.
Terry has bought a car on credit for his business. Which parts of the accounting equation will change?
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Assets and capital
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Capital and liabilities
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Assets and liabilities
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Assets, capital and liabilities
Correct Answer
A. Assets and capitalExplanation
When Terry buys a car on credit for his business, it will affect both the assets and capital of the accounting equation. The car will be recorded as an asset because it has value and can generate future economic benefits for the business. At the same time, the capital of the business will increase because Terry now has a new asset that contributes to the overall value of the business. Therefore, both the assets and capital parts of the accounting equation will change.Rate this question:
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- 36.
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.
Correct Answer
$225Explanation
Don't use $ signRate this question:
- 37.
Which of the following is revenue expenditure in a firm which has a large fleet of motor vehicles?
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Purchase of a new delivery van
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Redecorating the transport manager's office
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Paying the road fund licenses for the fleet of vehicles.
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Purchase for a new exhaust for a van
Correct Answer(s)
A. Redecorating the transport manager's office
A. Paying the road fund licenses for the fleet of vehicles.
A. Purchase for a new exhaust for a vanExplanation
The correct answers are redecorating the transport manager's office, paying the road fund licenses for the fleet of vehicles, and purchase for a new exhaust for a van. These expenses are considered revenue expenditures because they are incurred in the normal course of business operations and are necessary for maintaining the fleet of motor vehicles. They do not result in the acquisition of a new asset or improve the value or lifespan of an existing asset.Rate this question:
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- 38.
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
Correct Answer(s)
$11,174Explanation
The total charge for wages in the final accounts will be $11,174. This is calculated by adding the gross basic wages ($10,163) to the employee's pension contributions ($783) and the employer's pension contribution ($1,011).Rate this question:
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Mar 22, 2023Quiz Edited by
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Jul 13, 2011Quiz Created by
Sameerhussain27
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