CIE Accounting Paper-1: Specimen Questions with Answers 150 - 152 of 214

Question number: 150

MCQ▾

Question

Choose the source document from the following options?

Choices

Choice (4) Response

a.

Ledger

b.

Transaction

c.

Voucher

d.

Journal

Answer

c.

Explanation

Voucher is considered as source document of the business. Source documents are the evidences of business transaction through which we can get information about the nature of the transaction involved in the business.

Question number: 151

MCQ▾

Question

Which should be matched under matching concept?

Choices

Choice (4) Response

a.

Cost and profit earned

b.

Cost and loss earned

c.

Cost and revenue earned

d.

Cost and income earned

Answer

c.

Explanation

The revenue earned during the period of accounting year should be matched with the cost involved with the period in order to ascertain the profit earned during the year. Hence under matching concept cost and revenue earned are suitable in the above situation.

Question number: 152

Short Answer Question▾

Write in Short

Next limited ordered 300 printing components from Jainson. The price of each component was $12.40. Jainson allowed a trade discount of 5%.

Calculate the total of the invoice Next limited received.

Explanation

$3534

Total components ordered by Next limited = 300

The cost of each component is = $12.40

The total values of printing component are =

Trade discount is

The invoice amount is