IGCSE Accounting Paper-1: Specimen Questions with Answers 45 - 47 of 338

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Question 45

Question

MCQ▾

A sum of $ 500 written off as depreciation on Machinery has not been credited to the Machinery Account. What type of error has been made?

Choices

Choice (4)

a.

Commission

b.

Omission

c.

Error of principle

d.

Compensating error

Answer

b.

Explanation

The omission of the credit to the Machinery Account will be rectified by posting credit $ 500 in the Machinery account. The error of omission took place either in the journal or subsidiary books or in the ledger of the business transaction.

Question 46

Question

MCQ▾

In which side of balance sheet the value of closing stock will appear?

Choices

Choice (4)

a.

Assets

b.

Credit

c.

Debit

d.

Liabilities

Answer

a.

Explanation

The value of closing stock will appear on the assets side of balance sheet and on the credit side of the trading account. Usually the value of closing stock will be given in the adjustment of the transaction.

Question 47

Question

MCQ▾

Stephen returned faulty goods to his supplier, Lipton Limited. Name the business document which Lipton Limited issued to Stephen when the goods were supplied?

Choices

Choice (4)

a.

[Sales] invoice

b.

Credit note

c.

Debit note

d.

[Purchase] invoice

Answer

a.

Explanation

Invoice is a commercial document which is issued by the seller to the person who purchased goods from him. The invoice shows the name of the products, quantities, price and agreed services provided by the seller.

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