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FORM 5- TEST 2 cloned 11/2/2021
By Fazeeda Ali
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Last updated over 4 years ago
20 questions
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Question 20
20.
Patronage refund will most likely be found in the Appropriation account of a :
Limited company
Sole trader
Co-operative
Partnership
In a co-operative society, the daily affairs are administered by:
The majority of shareholders
All members meeting together
The chairman of the board
Persons elected or appointed to do so
If the members of a business organization form management and credit committees, the entity (or organization) can best be described as
Non-trading organization
Partnership
Co-operative
Corporation
What is the closing balance for the Receipts and Payments a/c?
$10,880
$2,520
$4,020
$12,380
A club’s receipts and payments account is the same as the
Profit and loss account
Trading account
Income and expenditure account
Cash account.
When the trial balance does not balance, the difference should be entered in the:
Trial and error account
Profit and loss account
Suspense account
Temporary account
The sale of office furniture was recorded in the sales account. What type error is this?
Omission
Commission
Principle
Complete reversal of entries
What effect does an overstatement of sales have on profits?
Profits will be overstated
Profits will be understated
No effect
Assets will be overstated.
A sale of goods for cash had been left out of the books. What type of error is this?
Commission
Principle
Omission
Posting
The sales of goods on credit to M. Smith was posted to N. Smith’s account. What type of error is this?
Omission
Commission
Principle
Complete reversal of entries
Purchases had been overstated by $200. What are the double entries to correct this error?
Dr. Purchases $400 Cr. Suspense $400
Dr. Suspense $400 Cr. Purchases $400
Dr. Purchases $200 Cr. Suspense $200
Dr. Suspense $200 Cr. Purchases $200
When an error affects one T-account
There is a mistake in the question
The trial balance remains in balance
The suspense account should be used
No correcting entries are required.
Which of the following errors would result in a suspense account having a credit balance?
Undercast purchases account
Undercast sales account
Undercast rent expense account
Undercast motor van account
Cash sales of $500 was debited to both the cash and sales a/c. What are the double entries to correct this error?
Dr. Suspense $500, Cr. Sales $500
Dr. Sales $500, Cr. Suspense $500
Dr. Sales $1000, Cr. Suspense $1000
Dr. Suspense $1000, Cr. Sales $1000
The correction of errors is entered in the:
General journal
Errors journal
Purchases journal
Sales journal
Discount received of $120 was credited in error to the Rent received account. What is the entry to correct this error?
Dr. Suspense $120, Cr. Discount received $120
Dr. Discount received $120, Cr. Suspense $120
Dr. Rent received $120, Cr. Discount received $120
Dr. Suspense $120, Cr. Suspense $120
The payment of electricity by cash $700 , had been recorded as Dr. Cash $700, Cr. Electricity $700
Dr. Suspense a/c $1400, Cr. Electricity $700, Cr. Cash $700
Dr. Electricity $1400, Cr. Cash $1400
Dr. Electricity $700, Cr. Cash $700, Cr. Suspense a/c
Dr. Electricity $700, Cr. Cash $700
A payment of $300 cash to A. Black had been posted in error to A. White’s account. What are the correcting entries?
Dr. A Black $300, Cr. Cash $300
Dr. A. white $300, Cr. A Black $300
Dr. A Black $300, Cr. A. white $300
Dr. A. white $300, Cr. Suspense $300
What effect will overstated wages have on the profit of a business?
Understated
No effect
None of the above
Overstated
The sale of goods for cash $250 had been completely omitted from the books. What are the journal entries to correct this error?
Dr. Sales $250, Cr. Cash $250
Dr. Cash $250, Cr. Sales $250
Dr. Cash $250, Cr. Suspense $250
Dr. Suspense $250, Cr. Cash $250