Financial Accounting

Question 1

1Where full double-entry records are not kept, capital is found by preparing a

Easy

A. statement of affairs B. bank reconciliation C. cash budget D. trial balance

Question 2

2The capital of a club is called the

Easy

A. drawings B. accumulated fund C. share capital D. reserve fund only

Question 3

3Cost of sales GH¢24,000 and margin 20%. Sales were

Hard

A. GH¢28,800 B. GH¢19,200 C. GH¢26,000 D. GH¢30,000

Question 4

4A receipts and payments account is a summary of

Easy

A. the purchases book B. the income statement C. the balance sheet D. the cash book

Question 5

5Life membership fees are usually

Medium

A. treated as expenses B. credited to a special fund and spread over years C. treated as current income in full D. ignored

Question 6

6Mark-up of 25% on cost is equivalent to a margin on sales of

Hard

A. 33⅓% B. 20% C. 25% D. 15%

Question 7

7Subscriptions received in advance are shown as

Easy

A. a current asset B. income C. a current liability D. capital

Question 8

8In a not-for-profit organisation, capital is called the

Easy

A. accumulated fund B. retained earnings C. drawings D. share capital

Question 9

9A club's summary of all cash received and paid during a year is the

Easy

A. receipts and payments account B. income and expenditure account C. appropriation account D. trading account

Question 10

10A statement of affairs is used to find

Medium

A. the trial balance B. capital when records are incomplete C. cash in hand only D. sales only