Oxford University Press Online Resource Centre Chapter 02

Oxford University Press | Online Resource Centre | Chapter 02

http://global.oup.com/uk/orc/busecon/business/black/01student/mcqs/ch02/?view=Standard

Chapter 02 Results

You have answered 3 out of 10 questions correctly. Your percentage score is 30%. Question 1 Which of these could be considered a good reason for a business to keep detailed financial records? Your answer: d) It must have detailed records available for inspection by competitors Correct answer: b) It needs to know who it owes money to and who owes it money Feedback: A good reason for a business to keep detailed financial records is because it needs to know who it owes money to and who owes it money Question 2 Which one of the following could not be classified as Revenue Income? Income Your answer: c) Income from the sale of services Correct answer: 1 of 5

d) Income from the sale of fixed assets

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Oxford University Press | Online Resource Centre | Chapter 02

http://global.oup.com/uk/orc/busecon/business/black/01student/mcqs/ch02/?view=Standard

Correct answer: d) Income from the sale of fixed assets Feedback: Income from the sale of fixed assets could not be classified as Revenue Income Question 3 Which one of the following could not be classified as Revenue Expenditure? Expenditure Your answer: b) Purchase of goods for resale, by cash Correct answer: a) Purchase of a fixed asset, by cheque Feedback: Purchase of a fixed asset, by cheque, could not be classified as Revenue Expenditure Question 4 Which one of the following assets could be described as a current asset? Your answer: a) Stock of goods for resale Feedback: Stock of goods for resale could be described as a current asset Question 5 2 of 5

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Oxford University Press | Online Resource Centre | Chapter 02

http://global.oup.com/uk/orc/busecon/business/black/01student/mcqs/ch02/?view=Standard

Question 5 A Profit is earned if: Your answer: a) Assets exceed Expenditure. Correct answer: b) Income exceeds Expenditure. Feedback: A Profit is earned if income exceeds Expenditure. Question 6 The purchase journal records: Your answer: a) invoices from creditors. Feedback: The purchase journal records invoices from creditors. Question 7 The two main types of ledger are: Your answer: a) sales and purchases. Correct answer: 3 of 5

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Oxford University Press | Online Resource Centre | Chapter 02

http://global.oup.com/uk/orc/busecon/business/black/01student/mcqs/ch02/?view=Standard

Correct answer: b) personal and impersonal. Feedback: The two main types of ledger are personal and impersonal. Question 8 If a business shows a debit balance in its own record of its bank balance, this indicates: Your answer: a) the business has a bank overdraft. Correct answer: c) the business has money in the bank. Feedback: This indicates that the business has money in the bank. Question 9 The extended balance sheet equation, which is the basis of double-entry bookkeeping, is: Your answer: a) Assets + Expenses = Liabilities + Income - Capital Correct answer: d) Assets + Expenses = Liabilities + Income +Capital Feedback: 4 of 5

The extended balance sheet equation is: Assets + Expenses = Liabilities + Income +Capital

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Oxford University Press | Online Resource Centre | Chapter 02

http://global.oup.com/uk/orc/busecon/business/black/01student/mcqs/ch02/?view=Standard

Feedback: The extended balance sheet equation is: Assets + Expenses = Liabilities + Income +Capital Question 10 A trial balance which shows equal totals for both debit and credit columns: Your answer: a) shows that the arithmetic is correct, but errors may still be present in the bookkeeping system. Feedback: A trial balance which shows equal totals for both debit and credit columns shows that the arithmetic is correct, but errors may still be present in the bookkeeping system.

5 of 5

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