CSEC Principles of Business – Test #1

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CSEC Principles of Accounts

CSEC Principles of Accounts - Test #1

This test is of 1 hour duration.

Please fill in your full name and e-mail address
before proceeding to the test.

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1. Accounting is

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2. The recording of the transactions in the accounting books of a business is called

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3. The purposes of preparing accounting documents and financial statements are to

I show information of the resources of a business.
II show who has claims on the business' resources.
III help users of financial information make decisions about the business.

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4. Why is accounting necessary in an organisation?

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5. In which of the following industries can people who are trained and skilled in accounting be employed?

I Banking
II Insurance
III Construction

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6. Under which of the following would Cash be classified in a Balance Sheet?

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7. Which of the following would be entered in the liabilities section of the Balance Sheet?

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8. Resources owned by the business are known as

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9. Mortgage and a five-year bank loan are classified in the Balance Sheet as

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Items 10-12 refer to the following information.

Mr. Clunis bought goods on credit with a total list price of $1 800 less 10% trade discount. He is entitled to a further 5% cash discount if he settles his account in 30 days.

10. What amount would Mr. Clunis record in his Purchases Journal?

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11. The amount of the trade discount is

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12. What amount would Mr. Clunis pay if he settles his account in 30 days?

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13. Which of the following accounts is NOT a real account?

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14. Nominal accounts include

I Purchases and Sales
II Motor car and Furniture
III Carriage Inwards and Carriage Outwards

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15. Which type of account is Building, Machinery and Office Equipment classified as?

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16. Which class of account does Debtors and Creditors belong to?

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17. Which of the following transactions should be credited in the bank account?

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18. Which of the following double-entry rules apply to the owner contributing cash to the business?

I Dr  Assets
II Cr  Capital
III Dr  Liabilties

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19. Makesi Soanes started a data processing company with $50 000 cash. Which of the following are accurate assumptions?

I Increase asset and capital
II Decrease asset and capital
III Debit cash and credit capital

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