Interactive workbook: Multiple-choice-questions 4.2 - Introduction to Accounting 2e Student Resources

. Debit trade receivables, credit sales is the double entry to record which transaction?

A cash sale to a customer.

A credit sale to a customer.

A cash refund to a customer.

The cancellation of a credit sale to a customer.

. Arturo Limited has received notification that one of the company's credit customers has become insolvent and will not be paying the £250 owed for a sale made in the past. What is the correct double entry to record this event?

Debit trade receivables £250, credit sales £250.

Debit sales £250, credit trade receivables £250.

Debit irrecoverable debts £250, credit trade receivables £250.

Debit trade receivables £250, credit irrecoverable debts £250.

. Debit trade payables, credit cost of sales is the double entry to record which transaction?

A return of goods to a supplier.

A purchase of goods from a supplier.

A refund received from a supplier.

A cash payment to a supplier.

. Petra pays all her personal electricity bills for her house from her business' bank account. What is the correct double entry to record this transaction?

Debit electricity expense, credit cash.

Debit capital account, credit cash.

Debit cash, credit capital account.

Debit cash, credit electricity expense.

. Claudio buys a new van for his delivery business for £20,000 using cash from the business bank account. What is the correct double entry to record this transaction?

Debit van £20,000, credit trade payables £20,000.

Debit cash £20,000, credit van £20,000.

Debit trade payables £20,000, credit van £20,000.

Debit van £20,000, credit cash £20,000.

. Christiana's business makes and sells clothing to retailers. She makes a sale to a customer on credit for £1,000. The customer returns the goods as they are damaged. What is the correct double entry to record this return of goods?

Debit trade receivables £1,000, credit sales £1,000.

Debit sales £1,000, credit cash £1,000.

Debit sales £1,000, credit trade receivables £1,000.

Debit cost of sales £1,000, credit trade receivables £1,000.

. Oliver's garden design and build business buys fencing panels from suppliers on credit. The fencing panels will be used on contracts undertaken for customers. What is the correct double entry to record this transaction in Oliver's books of account?

Debit trade payables, credit cost of sales.

Debit cost of sales, credit cash.

Debit cost of sales, credit trade payables.

Debit cash, credit trade payables.

. Debit cash, credit trade receivables is the double entry to record which transaction?

A receipt of cash from a credit customer.

A credit sale to a customer.

The cancellation of a credit sale to a customer.

Notification that a trade receivable has become an irrecoverable debt.

. Rakesh's financial year end is 30 September. His accountant has sent him her invoice for accountancy services provided up to the end of September 2021. Rakesh has not paid this invoice by 30 September 2021. What is the correct double entry to record this transaction in Rakesh's books of account?

Debit accounting expense, credit cash.

Debit cash, credit accounting expense.

Debit accruals, credit accounting expense.

Debit accounting expense, credit accruals.

. Debit trade payables, credit cash is the double entry to record which transaction?

The cancellation of a purchase from a supplier.

The payment of cash to a supplier for goods supplied on credit.

The purchase of goods from a supplier on credit terms.

The purchase of goods from a supplier for cash.

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