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The correct journal entries for subscriptions paid in advance is:

A.

Debit: Receivables account Credit: Subscriptions account

B.

Debit: Subscriptions accounts Credit: Payables

C.

Debit: Receivables Credit: Cash

D.

Debit: Cash Credit: Payables

Cost of goods sold for a manufacturing company is the total of

A.

prime costs + production overheads + opening work in progress - closing work in progress + opening inventories of finished goods - closing inventories of finished goods

B.

prime costs + production overheads + opening inventories of raw materials - closing inventories of raw materials + opening work in progress - closing work in progress

C.

prime costs + production overheads - opening work in progress + closing work in progress - opening inventories of finished goods + closing inventories of finished goods

D.

prime costs + production overheads + opening inventories of raw materials - closing inventories of raw materials + opening work in progress - closing work in progress + opening inventories of finished goods - closing inventories of finished goods

A company had a gross profit margin of 40%. Sales for the period were $280,000 and opening and closing inventories were $18,000 and $16,000 respectively.

Purchases for the period were therefore

A.

$114,000

B.

$170,000

C.

$110,000

D.

$166,000

Jasper has an opening capital balance at 1 January of $84,650 credit. During the period there was an increase in assets of $16,890 and an increase in liabilities of $22,480.

The balance on the capital account at the end of the period is:

A.

$79,060 credit

B.

$5,590 credit

C.

$5,590 debit

D.

$90,240 credit

ABC produces accounts to the year ended 31 December annually Extracts from the most recent financial statements are.

Which of the following ratios is a liquidity ratio?

A.

Debt/Equity x 100%

B.

Operating profit/Capital employed x 100%

C.

Revenue/Capital employed

D.

Current assets/Current liabilities

Refer to the Exhibit.

The correct ledger entry for payment of net wages to employees is:

The answer is:

A.

Option A

B.

Option B

C.

Option C

D.

Option D

Which TWO of the following are transactions that would be recorded in the sales ledger control account?

A.

Irrecoverable debts

B.

Cash received from credit customers

C.

Cash sales.

D.

Cash paid to credit suppliers.

E.

Credit purchases.

Refer to the Exhibit.

On 1 May year 1 a company pays insurance of $1,800 for the period to 30 April year 2

What is the charge to the income statement and the entry in the statement of financial position for year 1 ended 30 November?

A.

A

B.

B

C.

C

D.

D

An accounting system should provide an audit trail for all its transactions

Which of the following describes an audit trail?

A.

Provision of a complete history of any given financial transaction

B.

A timetable of deadlines of the audit

C.

A review of the audit process completed

D.

The planned audit process

Refer to the exhibit.

The following ratios have been calculated for A Limited:

The return on capital employed for A Limited is therefore

A.

30%

B.

25%

C.

7.5%

D.

15%