Page 316 - GMAT 2017b_Neatb

Accounting Practice Test

7. A business has the following transactions 11. Which of the following statements is correct in
recorded in its sales ledger for 2001: relation to a trial balance?
(A) It shows the financial position of a business.
£000
Debtors at 1 January 2001 25 (B) All the balances in the trial balance will be
Sales in 2001 345 summarized on the business balance sheet.
Receipts from debtors 318 (C) It is a list of balances and forms the starting
Credit notes raised in 2001 23 point for the preparation of the business.
Which is the correct figure for debtors at 31 December (D) It is part of the published accounts of a
2001? business.
(A) £29 000.
(B) £27 000. 12. A business has the following items in its trial balance:
(C) £52 000. £000
Trade debtors 25
(D) £75 000.
Prepayment 10
Banks Overdraft 5
8. A business has the following transactions
recorded in its purchase ledger: Trade Creditors 8
Fixed assets 15
Creditors at 1 January 2001 35 Closing stock 8
Purchases during 2001 275 Which of the following is the correct figure for the
Creditors at 31 December 2001 49 working capital of the business?
Debit notes raised on suppliers 5
(A) £42 000.
Which is the correct figure for the total of payments to
(B) £45 000.
suppliers during 2001?
(C) £50 000.
(A) £221 000.
(D) £30 000.
(B) £256 000.
(C) £284 000.
13. A business has the following items extracted
(D) £289 000.
from its trial balance:
£000
9. A business receives a cheque from a customer for
Opening stock 10
£256 in full agreed settlement of an account which
Purchases 25
showed a debit balance of £270. Which of the
Sales 40
following entries correctly records this
Expenses 10
transaction?
In addition, its closing stock is valued at
(A) Credit bank £256, credit discount received £14,
£15 000.
debit debtor £270.
(A) £20 000.
(B) Debit bank £256, debit discount received £14,
(B) £10 000.
credit debtor £270.
(C) £15 000.
(C) Debit bank £256, debit discount allowed £14,
(D) £nil.
credit debtor £270.
(D) Debit bank £256, debit discount allowed £14,
14. Use the following summary balance sheet to answer
credit creditor £270.
Questions 13, 14 and 15.
£000 £000
10. Which of the following statements is correct?
Fixed assets 22 Capital 20
(A) Accounting profit is the difference between
Stocks 10 Retained profit of year 5
cash receipts and cash paid in a period.
Debtors 20 Creditors 10
(B) Accounting profit is the total of cash sales in
Bank 5 Long-term loan 22
the year less the expenses for the period.
(C) Accounting profit is the difference between Which is the correct figure for the net assets of the
revenue income and expenses for the period. business?
(D) Accounting profit is the difference between (A) £12 000.
revenue income and cash payments for the (B) £25 000.
period.
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