Business transactions MCQs

Oops! Your answer is not correct. The correct answer is “Option C”
12,450 + 2,480 + 1,350 = $16,280

Oops! Your answer is wrong. The correct answer is “Option A”.

Oops! Your answer is wrong. The correct answer is “Option B”

The exact amount of petty cash expenditure is reimbursed at intervals to maintain a fixed float.

Oops! your answer is wrong. The correct answer is “Option B”.

A, C and D are all ledgers to which transactions are posted from the books of original entry. The journal (B) is the book of original entry that is used for unusual transactions and to correct errors and omissions.

Oops! your answer is not correct. The correct answer is “Option D”.

50,000 + 17,000 + 7,500 + 6,000 = $80,000

Oops! Wrong answer. The correct answer is “Option B, D”.

Purchase order and goods received note.

Oops! Wrong answer. The correct answer is “Option C”.

A credit note is issued by a supplier when a customer returns goods to them (C). Invoices (A) are issued when goods are originally sold, on the basis of the delivery note (D) which shows what exactly has been sold. A remittance advice (B) is sent in by the customer to the supplier with payment.

Oops! Wrong Answer. The correct answer is “Option C”.

Discounts allowed, like discount received, are recorded in the cash book as the book of original entry.

Oops! wrong answer. The correct answer is “Option A”.

VAT on credit sales is recorded in the sales day book (A). VAT on cash sales and on credit purchases would be recorded in the cash book (C) and purchases day book respectively.

Oops! Wrong answer. The correct answer is “Option C”.

When purchases are made from a supplier with which the business does not have an account, they must be paid for in cash – so the book of original entry is the cash book.

Oops! Wrong answer. The correct answer is “Option A”.

There is $10 or a petty cash voucher for $10 missing from the petty cash box.

Oops! wrong answer. The correct answer is “Option B”.

38,600 + 3,500 = $42,100

Oops! wrong answer. The correct answer is “Option B and D”.

The invoice to a customer will be recorded in the sales day book while the cheque to a supplier will be recorded in the cash book. The purchase order and goods received note act as supporting documentation when an invoice arrives from a supplier, but are not themselves recorded in the books of original entry. Similarly, the delivery note acts as supporting documentation when preparing an invoice to a customer, but is not separately recorded.