Final Accounts Of A Sole Trader! Trivia Quiz

13 Questions | Total Attempts: 1775

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Final Accounts Of A Sole Trader! Trivia Quiz - Quiz

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Questions and Answers
  • 1. 
    A business bought a car for £25,000. It had already depreciated by £5,000. The business depreciates motor vehicles by 20% using the reducing balance method. (a) Calculate the depreciation expense (b) State the provision for depreciation in the balance sheet.  
  • 2. 
    If depreciation was not calculated, what effect would it have on the financial accounts?
  • 3. 
    Which of the following is not an asset?
    • A. 

      Buildings

    • B. 

      Cash

    • C. 

      Debtors

    • D. 

      Loan from K Harris

  • 4. 
    Which of the following is a liability?
    • A. 

      Machinery

    • B. 

      Creditors

    • C. 

      Motor vehicle

    • D. 

      Bank

  • 5. 
    Which of the following is the best meaning of purchases?
    • A. 

      Items bought

    • B. 

      Good bought for resale

    • C. 

      Goods bought on credit

    • D. 

      Goods paid for

  • 6. 
    Which of the following is correct?
    • A. 

      Profit does not affect capital

    • B. 

      Profit reduces capital

    • C. 

      Capital can only come from profit

    • D. 

      Profit increases capital

  • 7. 
    Work out capital from the following: Premises £20,000, Closing stock £8,500, Cash £100, Creditors £3,000 Loan £4,000
    • A. 

      £21,100

    • B. 

      £21,600

    • C. 

      £32,400

    • D. 

      £21,400

  • 8. 
    Net profit is calculated in the 
    • A. 

      Trading account

    • B. 

      Profit and loss account

    • C. 

      Trial balance

    • D. 

      Balance sheet

  • 9. 
    The order in which current asset should be shown in the balance sheet is
    • A. 

      Cash, bank. debtors, stock

    • B. 

      Debtors, stock, bank, cash

    • C. 

      Stock, debtors, bank, cash

    • D. 

      Stock, debtors, cash, bank

  • 10. 
    Which of these best describes fixed assets?
    • A. 

      Are bought to be used in the business

    • B. 

      Are items which will not wear out quickly

    • C. 

      Are expensive items bought for the business

    • D. 

      Are of long life and are not bought specifically for resale

  • 11. 
    If sales are £8,200, opening stock £1,300, closing stock £900, purchases £6,400, carriage inwards £200, the cost of goods sold figure is
    • A. 

      £6,800

    • B. 

      £6,200

    • C. 

      £7,000

    • D. 

      Another figure

  • 12. 
    Rent and rates are £6,000 and Insurance £1,500. If a further £500 rent needs to be accrued £250 of insurance is prepaid what balances need to be shown in the profit and loss account.
    • A. 

      Rent £6,500, Insurance £1,750

    • B. 

      Rent £5,500, Insurance £1,750

    • C. 

      Rent £6,500, Insurance £1,250

    • D. 

      Rent £5,500, Insurance £1,250

  • 13. 
    Depreciation is 
    • A. 

      The amount spent on buying fixed assets

    • B. 

      How much a fixed asset can be sold for

    • C. 

      The part of the cost of the fixed assets that is used up over its period of use

    • D. 

      The money spent replacing assets

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