1)The effect of recording a single transaction in the double entry

accounting records can;

a) Increase the balance on an asset amount by a given amount and

decrease the balance on a liability account by the same amount
b) Increase the balance on one asset account by a given amount
and increase the balance on another asset account by the same
amount.
c) Decrease the balance on a liability account by a given amount
and decrease the balance on an asset account by the same
amount
d) Decrease the balance on an asset account by a given amount
and increase the balance on a liability account by the same
amount.
2)Which transaction increases the debit balances of the bank
account?

a) The firm lodging money received from N pay lot, a debtor

b) The purchase of stock by the firm
c) The firm repaying a bank loan
d) The firm paying money to one of its creditors

3) A debit balance on a ledger account may represent:

a) Cash or goods or services given, or liabilities, or revenue, or a

loss
b) Cash or goods or services given. or liabilities, or revenue, or
profit
c) Cash or goods or services received, or assets, or expenses, or
profit
d) Cash or goods or services received, or assets. Or expenses, or
loss.
4) The running balance account drawn to:

a) Know the balance in the account at month end

b) Know the balance in the account after each transaction
c) Know the balance or any given date
d) Know the balance or any given date or after each transaction.

5) Calculate the balance carried down in the account op P .penny on 31

may?

May 01 sales 205

May 14 sales 360
May 31 sales 180
May 17 bank 300
May 28 return inwards 50

a) $380 debit
b) $395 credit
c) $395 debit
 d) None of the above

6) Calculate the balance brought down In J. jacks account on may

19th

May 02 sales 200

May 12 sales 650
May 30 sales 800
May 15 bank 300
May 25 return inward 75

a) $520 debit
b) $520 credit
c) $849 credit
d) None of the above
7) Calculate the balance brought down on 30 june 1998 in G.
Gibson’s account:
1998 G. Gibson $
June 18 bank 400
June 22 returns 44
June 1 purchase 870
June 15 purchases 245
June 29 purchases 178

a) A debit balance of $840

b) A debit balance of $715
c) Accredit balance of $849
d) There is nill balance in the account
8) Calculate the balance brought down on the account of G.
Gibson in Q.7 on 20 June 1998?

a) A credit balance of $671

b) A debit balance of $715
c) A credit balance of $715
d) A debit balance of $671
9) The balance brought down in the sales account is on the:

a) Debit side
b) Credit side
c) Both side are equal
d) None of the above
10) In a business books the ledger account of J. Brown, a
customer shows a debit balance of $450. What does this
mean?

a) Brown has paid $450 to the business

b) Brown owes the business $450
c) The business has paid brown $450
d) The business owes brown $450
11) A supplier’s account in a customer’s books has a credit
balance of $8000. What does this mean?

a) The customer owes the supplier $8000

b) The customer has paid the supplier $8000
c) The supplier has paid $8000
d) The supplier’s owes $8000
12) Trial balance can best be describe as:
a) The final account in the books
b) Show all the asset balances
c) A list of all balances on the books
d) Discloses the financial position of a business
13) Trial balance totals can differ when:
a) It is drawn up by the accountant
b) Drawn before the profit and loss account prepared.
c) If drawn up half way through the financial year.
d) Never
14) Should the totals of trial balance always agree?
a) No, there are sometimes good reasons why they differ
b) Yes except where the trial balance is extracted at the yaer end
c) Yes, always
d) No, because it is not a balance sheet
15) The purpose of the trail is that it:
a) Shows its financial position
b) Establishes whether its accounting records are correct
c) Lists all the entries an its double entry accounting record
d) Is a list of all of the balances brought down in its double
accounting record
16) The trial balance proves that:
a) The total of the debit balances brought down in its nominal
(general) ledge equals that of the credit balances brought down.
b) The double entry record it has made for all transaction is correct
c) Its bank balance is correct
d) It has earned a profit or incurred a loss
17) In a trial balance purchases:
a) Would be shown on the debit side
b) Would be shown on the credit side
c) Would not appear unless they were credit purchases only
18) Trial balance prepare to check the:
a) Financial position
b) Profitability position
c) Accuracy of the account
d) Arithmetical accuracy of the account.
19) Definition of a trial balance is as follows:
a) A ledger account
b) A list of account with balances
c) A statement of specific accounts
d) A self balancing account.
20) Why does a business prepare a trial balance?
 a) To calculate the profit and loss
b) To show the financial position
c) To check the arithmetical accuracy of the ledger
d) To check the cash and bank balances
21) Which book of primary entry is part of the double entry
system?
a) Cash book
b) General journal
c) Purchase journal
d) Sales journal
22) Which one of the following is the book of original etry?
a) The sales (debtors) ledger
b) The purchase journal (daybook)
c) The general (nominal ledger)
d) The purchases (creditor) ledger
23) Personal accounts are related to:
a) Assets and liabilities
b) Expenses losses and incomes
c) Customers and creditors
d) Capital and creditors
24) Identify the personal account from the following:
a) Building
b) Wages
c) Debtors
d) None of the above
25) Customer’s personal account are found in:
a) Private ledger
b) General ledger
c) Purchases ledger