I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

Which of the following documents should accompany a payment made to a supplier?  

A 

Supplier statement  

B 

Remittance advice  

C 

Purchase invoice  

D Purchase 

order 

 

(2 marks) 

14 

Which of the following are books of prime entry? 

1 

Sales day book 

2 Cash 

book 

3 Supplier 

statements 

4 

Petty cash voucher 

A 

1 and 2 only 

B 

1, 2 and 4 only 

C 1 

only 

D 

All of them 

 

(2 marks) 

15 

In which book of prime entry will a business record credit notes received in respect of goods 

which  the business has sent back to its suppliers? 

A 

The sales returns day book 

B 

The cash book 

C  

The purchase returns day book 

D  

The purchase day book 

 

(2 marks) 

16 

The business entity concept requires that a business is treated as being separate from its owners. 

Is this statement true or false? 

A True 

B False 

 

(1 mark) 

BPP Tutor Toolkit Copy

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           PRACTICE QUESTION BANK 

 

488

 

17 

A business sells $100 worth of goods to a customer, the customer pays $50 in cash immediately 

and will pay the remaining $50 in 30 days' time.  

What is the double entry to record the sale?  

A 

Debit cash $50, credit receivables $50, credit sales $50 

B 

Debit receivables $50, debit cash $50, credit sales $100 

C 

Debit sales $100, credit receivables $50, credit cash $50 

D 

Debit sales $100, credit cash $100 

 

(2 marks) 

18 

Chalk purchases $500 worth of cheese from Cheddar Co. Chalk agrees to pay Cheddar Co in 30 

days' time. What is the double entry to record the purchase in Cheddar Co's books?  

A 

Debit sales $500, credit receivables $500 

B 

Debit purchases $500, credit payables $500 

C 

Debit receivables $500, credit sales $500 

D 

Debit payables $500, credit purchases $500 

 

(2 marks) 

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