Attempt the ten questions below and then click 'Submit'.
Sign in to Google
to save your progress.
Q1. A cheque for €640 issued to a supplier had been entered in the books (cash book and ledger) as €460. How does this effect our Bank figure?
Q2. January sales are €80,000 and February sales are €90,000. Gross profit is 25% of sales. Purchases should be sufficient to cover the following months sales. What is the purchases figure for January?
Q3. The price of a share is 90c. Dividend Per Share is 15c and Earnings Per Share are 10c. How long would it take one ordinary share to recover it's value based on present performance?
Q4. We paid rent of €900 this year and there is €300 rent due at the end of the year. One third of rent is for the private section of the Business. What figure should appear for rent in the Profit & Loss Expenses?
Q5. Margin of Safety is…
Total Production minus Fixed Costs
Total Production minus Total Costs
Total Production minus Total Income
Total Production minus Break Even Point
Q6. In a production budget, to calculate the total Cost of Production, we add Raw Materials, Variable Overheads, Fixed Overheads, and what else?
Selling and Administration Expenses
Q7. Clients fees for 2014 were €12,000. Clients fees in arrears at the end of the year were €2,000. What figure should appear for Clients Fees in this year's Trading & Profit & Loss Account?
Q8. A creditor, who was owed €800 by us, accepted equipment (which cost €600), in full settlement of the debt. Which three parts of the tabular statement would be effected?
Equipment, Creditors and P&L Balance
Equipment, Creditors and Bad Debts
Equipment, Creditors and Debtors
Equipment, Creditors and Drawings
Q9. The Profit & Loss Balance on January 1st is on the Credit (right-hand) side of the Trial Balance. When we complete our Profit & Loss Account for the year therefore, what should we do with this figure?
Do not enter it in this years Profit & Loss Account
Add it to Sales at the start of the Profit & Loss Account
Subtract it from our Retained Profit for this year
Add it to our Retained Profit for this year
Q10. Bar Receipts this year were €22,000. Bar Debtors on January 1st were €400 and Bar Debtors on December 31st were €600. What is the figure for Bar Sales this year?
This content is neither created nor endorsed by Google.
Terms of Service