IGCSE Accounting Paper-1: Specimen Questions with Answers 37 - 39 of 338

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Question 37

Question

MCQ▾

Which business documents form the basis for making entries in the sales book?

Choices

Choice (4)

a.

Inward invoice

b.

Inward Receipts

c.

Outward Receipts

d.

Outward invoice

Answer

d.

Explanation

The sales book plays an important role in all credit sales of goods in the business. It is also known as ‘Day book’ , ‘Sales day book’ , ‘Sold book’ , and ‘Sales journal’ . Outward invoices form the basis for making entries in the sales book.

Question 38

Question

MCQ▾

Among the following which one is liability?

Choices

Choice (4)

a.

Purchases

b.

Bank loan

c.

Office equipment

d.

Cash in hand

Answer

b.

Explanation

Assets are the property owned by the company in order to strengthen the business transaction. Liability means the company owes to pay to the creditors. Hence bank loan is the liability of the company whereas other items are assets to the company.

Question 39

Question

MCQ▾

Where are the accounts of credit suppliers found?

Choices

Choice (4)

a.

Purchase ledger

b.

Sales journal

c.

Purchase journal

d.

Sales ledger

Answer

a.

Explanation

Individual accounts of suppliers will be reflected in the Purchase ledger. This entry will arise when business has made on credit purchase. The sales ledger will be created when credit customers are found in the business.

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