(i)                 A statement showing assets, liabilities and capital of a business undertakings in a particular trading period is called a

A       trial balance B          ledger   C          balance sheet

                                D   sales day book               E   cash book.

(ii)               Which of the following is the main book of account?

A       The cash book        B          The Journal     

                                C    The petty cash book                              D   The Ledger

                                E    The Journal Proper.

(iii)             The correct method of calculating cost of goods sold is

A       closing stock  + purchases ­ opening stock

B       opening stock + closing stock ­ purchases

C       closing stock + purchases + opening stock

D       opening stock ­ purchases + closing stock

E        opening stock + purchases ­ closing stock.

(iv)              Which of the following statement describes non­current 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 bought for resale.

E        Items having a long life and not bought for resale.

(v)                Which of the following is NOT an asset?

A       Buildings

B       Loan from K Hamis

C       Accounts receivable

D       Cash balance

E        Inventories.

(vi)              The credit entry for net profit is done in the 

1.  trading account 
2. drawings account         
3. profit and loss account
4. capital account
5.  income and expenditure account.

(vii)            The total of the purchases journal is entered in the 

A       debit side of purchases day book

B       credit side of the purchases account

C       debit side of the purchases account

D       debit side of the sales account

E        credit side of the sales.

(viii)          Which of the following expression is correct?

A       Assets ­ capital = liabilities

B       Liabilities ­ capital = assets

C       Liabilities = assets = capital

D       Assets + liabilities = capital

E        Capital + assets = liabilities

(ix)              The cost of putting goods into a saleable condition should be charged to

A       trading account

B       sales account

C       profit and loss account

D       receipt and payment account

E        income and expenditure account

(x)                Which of the following describes the meaning of purchases?

A       Goods bought for cash

B       Goods bought on credit

C       Goods bought for resale

D       Goods bought and paid for

E        Goods bought and stored.