Sage Computerised Accounting - Qp8 - Quiz, Flashcards & Trivia

1. Capital is the money invested by the owner and kept in the business.

True

False

Capital refers to the funds that are invested by the owner and retained within the business. It represents the owner's equity and is used to finance the operations and growth of the business. Therefore, the statement that capital is the money invested by the owner and kept in the business is true.

Explanation

Capital refers to the funds that are invested by the owner and retained within the business. It represents the owner's equity and is used to finance the operations and growth of the business. Therefore, the statement that capital is the money invested by the owner and kept in the business is true.

2. Purchases are indicated with a nominal code 5000-5999.

True

False

Purchases are indicated with a nominal code 5000-5999. This statement is true because nominal codes are used to categorize different types of transactions in accounting. In this case, the range of 5000-5999 is specifically designated for purchases. This allows for easy identification and tracking of purchases within the accounting system.

Explanation

Purchases are indicated with a nominal code 5000-5999. This statement is true because nominal codes are used to categorize different types of transactions in accounting. In this case, the range of 5000-5999 is specifically designated for purchases. This allows for easy identification and tracking of purchases within the accounting system.

3. Current assets are items that belong to the business but will be used up within 12 months (stock, debtors, bank).

True

False

Current assets are indeed items that belong to the business and are expected to be used up or converted into cash within 12 months. Examples of current assets include inventory or stock, accounts receivable or debtors, and cash in the bank. Therefore, the statement "Current assets are items that belong to the business but will be used up within 12 months" is true.

Explanation

Current assets are indeed items that belong to the business and are expected to be used up or converted into cash within 12 months. Examples of current assets include inventory or stock, accounts receivable or debtors, and cash in the bank. Therefore, the statement "Current assets are items that belong to the business but will be used up within 12 months" is true.

4. Suspense and mispostings are indicated with a nominal code of 8000-8999.

True

False

The given statement is false. Suspense and mispostings are not indicated with a nominal code of 8000-8999. This means that there is another way to indicate suspense and mispostings, which is not specified in the given information.

Explanation

The given statement is false. Suspense and mispostings are not indicated with a nominal code of 8000-8999. This means that there is another way to indicate suspense and mispostings, which is not specified in the given information.

5. Fixed Assets and Depreciation is indicated with a nominal code 1000-1999.

True

False

The statement is false because fixed assets and depreciation are not indicated with a nominal code in the range of 1000-1999. The correct range for indicating fixed assets and depreciation is typically in the range of 1500-1999.

Explanation

The statement is false because fixed assets and depreciation are not indicated with a nominal code in the range of 1000-1999. The correct range for indicating fixed assets and depreciation is typically in the range of 1500-1999.