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Mid Semester First Test (2)

This document is a mid-semester in-class test for ACCT 102: Accounting Fundamentals & the Professional Accountant at Northern Caribbean University. It includes multiple-choice questions covering various accounting concepts such as purchases, sales, trial balance, assets, liabilities, and the accounting equation. Additionally, it contains practical transaction entries and theoretical questions related to accounting principles.

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nwilmot10
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Download as DOCX, PDF, TXT or read online on Scribd
14 views

Mid Semester First Test (2)

This document is a mid-semester in-class test for ACCT 102: Accounting Fundamentals & the Professional Accountant at Northern Caribbean University. It includes multiple-choice questions covering various accounting concepts such as purchases, sales, trial balance, assets, liabilities, and the accounting equation. Additionally, it contains practical transaction entries and theoretical questions related to accounting principles.

Uploaded by

nwilmot10
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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NORTHERN CARIBBEAN UNIVERSITY

College of Business & Management


Department of Business Administration

ACCT 102: Accounting Fundamentals & the


professional Accountant
Mid- Semester in class Test
Fall 2024

1. Which of the following best describe the meaning of purchases?


a. Items bought
b. Goods bought on credit
c. Goods bought for resale
d. Goods paid for

2. Which of the following should not be called sales?


a. Office fixtures sold
b. Good sold on credit
c. Goods sold for cash
d. Sale of item previously included in purchases

3. Which of the following best describe the trial balance?


a. It shows the financial position of a business
b. It is a special account
c. It shows all the entries in the books
d. It is a list of balances on the books
4.Which of the following is not an asset?

(A) Buildings

(B) Cash balance

(C) Accounts receivable

(D) Loan from K. Harris

5. Which of the following would not be included on a balance sheet?

a. Accounts receivable
b. Accounts payable.
c. Sales.
d. Cash.

6. Which of the following statements is incorrect?

a. Assets + Capital = Liabilities


b. Capital = Assets – Liabilities
c. Liabilities + Capital = Assets
d. Liabilities = Assets – Capital

7. Which of the following is not an asset?

a. Cash at bank
b. Premises
c. Stock
d. Creditors

8. Which of the following is a liability?

a. Buildings
b. Debtors
c. Loan from J. Henry
d. Equipment

9. The balances in the purchases ledger are usually:


a Credit balances
b Contras
c Nominal accounts balances
d Debit balances

10 Started business with total assets $200,000 and liabilities of $50,000 how much would
be the owner’s capital?

a. $ 200,000
b. $100,000
c. $250,000
d. $150,000

11 The owner of the business bought machinery cost $50,000 on time. What would be
the double entry?

a. Debit purchase and credit cash


b. Debit Purchase and credit payables
c. Debit Machinery and credit payables
d. Debit Payables and credit Cash

12 The proprietor withdrew cash from the business for personal use. This would be
recorded as?
a. Dr. cash and credit bank
b. Debit bank and credit drawings
c. Debit drawings and credit cash
d. Debit drawings and credit bank

13 Which of the following is not an expense?


a. Rent paid
b. Salaries
c. Utilities
d. Rent received

14 Which of the following accounts carried a debit balance?

a. Capital account
b. Revenue
b. Liabilities
c. Assets

15) Which of these best describes non-current assets?


(A) Items bought to be used in the business
(B) Items which will not wear out quickly
(C) Expensive items bought for the business
(D) Items having a long life and not bought specifically for resale

16) To find the value of closing inventory at the end of a period we


(A) Do this by physically counting the inventory (i.e. stocktaking)
(B) Look in the inventory account
(C) Deduct opening inventory from cost of goods sold
(D) Deduct cost of goods sold from sales

17) The personal assets of the owner of a company will not appear on the company’s
balance sheet because of which principle/guideline?
(a) Cost
(b) Economic Entity
(c) Monetary Value
(d) None of the above
18) Which principle/guideline is associated with the assumption that the company will
continue on long enough to carry out its objectives and commitments?
(a) Economic Entity
(b) Going Concern
(c) Time Period
(d) None of the above

(19) Carlton provided the following information about its balance sheet:

$
Cash 120
Accounts Receivable 570
Common Stock 720
Accounts Payable 260
Loan from C. Brown 1350
Based on the information provided, how much are Remington’s liabilities?
(a) $260
(b) $980
(c) $1,610
(d) $2,070

(20) Which of the following is incorrect?


Assets Liabilities Capital
(a) 18 270 5 290 12 980
(b) 9 340 3 120 6 220
(c) 15 160 6 380 7 780
(d) 12 230 1 390 10 840
Double Entry.
Enter the following transactions to their various accounts and balance off the accounts.

SMA Ltd. commenced in business as a Retailer of grocery items on 1 January. 2023


1 Jan. Commenced business by paying $500,000 into a business bank
account.
3 Jan. Bought a motor van on credit from ABG Ltd. for $800,000.
4 Jan. Bought and equipment on credit from BAP Ltd. for $400,000
8 Jan. Bought goods for $250,000 paying by cheque.
10 Jan. Received $400,000 cash from a customer for groceries that was credited.
11 Jan. Purchase goods on credit for $180,000 from CAP Ltd.
12 Jan. Bought goods for $150,000 paying in cash.
14 Jan. Issued an invoice to a customer, KOR Ltd., for $75,000 worth of groceries.
18 Jan. Returned goods of the, value $30,000 to CAP Ltd.
23 Jan. Took $25,000 of the cash to buy a birthday present for his son.
28 Jan. KOR paid $45.000 by cheque towards his bill. 20 marks

1. What is the meaning of Going concern in accounting? 5 marks


2. State the accounting equation 5 marks

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