(i)                 A credit balance of sh. 20,000 on the cash column of the cash book would mean that 

1. the business owner has Tsh. 20,000 cash in hand.
2. the bookkeeper has drawn Tsh. 20,000 in his cash book.
3.  the shop keeper lost Tshs. 20,000 from the business.
4.  the shop keeper sold goods on credit for Tsh. 20,000.
5. the business owner spent Tsh. 20,000 more than he/she has received.

(ii)               Sales invoices are first entered in the

1.  cash book 
2. purchases journal 
3.  sales account 
4. sales journal
5.  purchases account.

(iii)             An authority letter issued by the Accounting Officer or his deputy covering the authority for specific expenditure is called

1. ambit of the vote   
2.  warrant of funds 
3. virement  
4. reallocation warrant
5. warrant holder.

(iv)              Which of the following are the examples of revenue expenditure?    

1. Purchases of goods and payment for electricity bill in cash
2. Repair of van and petrol costs for van
3. Buying machinery and paying for installation costs
4. Electricity costs of using machinery and buying van
5. Buying van and petrol costs for van

(v)                Which of the following is treated as current assets in the preparation of statement of financial position?

1. Unearned revenue   
2. Accrued expenses
3. Accrued revenue 
4. Depreciation expenses
5. Accumulated depreciation

(vi)              In the trial balance the balance on the provision for depreciation account is 

1. not shown, as it is part of depreciation.
2.  shown as a debit items.
3. shown as a credit items.
4.  shown in both sides of the trial balance.
5. sometimes shown as a credit, sometimes as a debit.

(vii)            When the financial statements are prepared, the bad debts account is closed by being transferred to

1.  balance sheet. 
2. profit and loss account.
3. trading account. 
4. provision for doubtful debts account.
5. profit and loss appropriation account.

(viii)          At the beginning of accounting year Y. club has Tsh. 14,000 as non-current assets, Tsh. 5,000 as current assets and Tsh. 5,000 liabilities. What would be its opening accumulated fund?

1. Tsh. 4,000. 
2.  Tsh. 14,000. 
3. Tsh. 5,000.
4. Tsh. 24,000. 
5.  Tsh. 12,000.

(ix)              A cheque which is not accepted for payment by the bank due to insufficient fund in the drawer’s bank account is referred to as

1. dishonoured cheque 
2.  unpresented cheque
3. uncredited cheque 
4. unrecorded cheque
5. open cheque

(x)                What is the effect of Tsh. 50,000 being added to purchases instead of being added to a non-current asset?

1.  Net profit would be understated
2. Net profit would be overstated
3. Net profit would not be affected
4. Gross profit would be effected
5. Both gross and net profits would be understated