Final Accounts Of A Sole Trader! Trivia Quiz
(62).jpg "Final Accounts Of A Sole Trader! Trivia Quiz - Quiz")
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- 1.Which of the following is not an asset?
- A.
Buildings
- B.
Cash
- C.
Debtors
- D.
Loan from K Harris
- 2.Which of the following is a liability?
- A.
Machinery
- B.
Creditors
- C.
Motor vehicle
- D.
Bank
- 3.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
- 4.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
- 5.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
- 6.Net profit is calculated in the
- A.
Trading account
- B.
Profit and loss account
- C.
Trial balance
- D.
Balance sheet
- 7.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
- 8.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
- 9.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
- 10.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
- 11.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
- 12.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.
- 13.If depreciation was not calculated, what effect would it have on the financial accounts?
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