IGCSE ACCOUNTING 902 – MODULE TEST

Name: Date: Passing Score: Score:

40
50 80% 50 %

Select the letters with the correct answers.

1. Assets are … [1 mark each = 5 marks]

A. items that are expected to be turned into cash in the long term.
B. Items that are owned by or owed to a business.
C. Items that are owed by a business.
D. Items that are purchased for short-term use by a consumer.

2. A cash discount is …

A. a deduction from the recommended price of goods bought by a regular

customer.
B. an allowance given to a customer for prompt payment.
C. an allowance given to a customer for payment using cash only.
D. a deduction from the list price of goods for bulk buying by a customer.

3. How are returns inwards recorded in the ledger?

account to be debited account to be credited

A. cash returns inwards

B. customer returns inwards

C. returns inwards cash

D. returns inwards customer

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4. Which account is in the sales (debtors) ledger?

A. customer’s account
B. sales account
C. returns inwards account
D. cash sales accounts

5. What is the correct treatment when a customer buys your goods on credit?

general ledger sales ledger

A. debit cash credit sales credit sales credit sales debit cash debit trade
receivables

B. debit trade credit sales

C. debit cash credit sales credit sales credit sales debit cash debit trade
receivables

D. debit trade receivables credit sales

6. Read each statement and determine if they are TRUE or FALSE. Tick the appropriate
column. [1 mark each = 5 marks]

TRUE FALSE
a. Manny brings his private motorbike into business; the
entry would be:
Debit: Motorbike Credit Capital

b. The prime function of accounting is to classify and

record business transactions.

c. Assets + Capital =Liabilities

d. To record an increase in any given asset account, that

account must be debited

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e. Manny introduces additional $100,000 cash into his

business. The entries would be:

Debit: Cash Credit Capital

7. Complete the following. [1 mark each = 4 marks]

a. Money owed to an outsider is a(n) _________________.

b. The difference between assets and liabilities is ________________.
c. To sell goods “on account” is to create a ___________________.
d. The Company buy Stationery on credit, the accounting entry should be to
Credit: ________________

8. Fill in the following table by either filling in debit or credit in the appropriate box.
[1 mark each = 16 marks]

ACCOUNTS INCREASE DECREASE

a. Trade Receivable

b. Trade Payable

c. Cash

d. Wages

e. Dividends

f. Capital

g. Sales

h. Rent Expense

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9. In your own words, explain what the books below are used to record. [6 marks]

Name of Book Used to Record

Sales Journal

Purchase Journal

Sales Return Journal

Purchase Return
Journal

Cash Book

General Journal

10. Enter the following transactions in the correct ledger accounts: [14 marks]

2011
June 1 Bought goods on credit for $72 from Blake

June 3 Bought goods on credit for $90 from Foster

June 5 Returned goods to Blake $15

June 19 Sold goods for cash $25

June 21 Sold goods on credit $64 to Rose

June 30 Bought goods on credit from Price $145

June 30 Rose returns goods valued at $10

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