Control accounts MCQs


11)

Which of the following statements is/are correct?

1. Creditor control account is also known account payable control account
2. Creditor control account is also referred to as purchase ledger control account
3. Creditor control account is also called purchase ledger account

A)  1 and 3 are correct WRONG ANSWER

B)  3 and 2 are correct WRONG ANSWER

C)  1 and 2 are correct RIGHT ANSWER!!!


12)

A contra entry of $1000 between sales ledger and purchase ledger was omitted from creditor control account. Which of the following is the correct adjustment in a creditor control account?

A)  $1000 should be creditedWRONG ANSWER

B)  $1000 should be debited RIGHT ANSWER!!!

C)  No adjustment requiredWRONG ANSWER


13)

A creditor control account is a kind of _______ since it can be used to proved the arithmetic correction of accounting record

A)  Purchases account WRONG ANSWER

B)  Creditor account WRONG ANSWER

C)  Trial balance RIGHT ANSWER!!!

D)  Expense account WRONG ANSWER


14)

The total of purchases return is entered on the which side of a creditor control account?

A)  Debit side RIGHT ANSWER!!!

B)  Credit side WRONG ANSWER

C)  No accounting treatment requiredWRONG ANSWER


15)

Discount received is entered on the which side of a creditor control account?

A)  Debit side RIGHT ANSWER!!!

B)  Credit sideWRONG ANSWER

C)  No accounting treatment required WRONG ANSWER


16)

identify the correct double entry for “bill receivable dishonor”

A)  Debit debtor and Credit bill dishonored RIGHT ANSWER!!!

B)  Debit bill dishonored and Credit debtor WRONG ANSWER

C)  Debit creditor and Credit bill dishonor WRONG ANSWER

D)  Debit cash and Credit debtor WRONG ANSWER


17)

Generally, the total amount purchases is taken from which book of account for the purpose of preparing Creditor control account?

A)  Cash book WRONG ANSWER

B)  Bank statement WRONG ANSWER

C)  Purchase day bookRIGHT ANSWER!!!

D)  Purchases ledger accounts WRONG ANSWER


18)

A creditor control account contains the following transaction:

» Bank = $100
» Purchases=$200
» Discount received = $100
» Balance c/d = $300

Work out the balance b/d


A)  $100 WRONG ANSWER

B)  $200 WRONG ANSWER

C)  $300RIGHT ANSWER!!!

D)  $500WRONG ANSWER


19)

Which of the following, generally, doesn’t appear in a debtor control account?

A)  Discount allowed WRONG ANSWER

B)  Bank or cash WRONG ANSWER

C)  Dishonored check WRONG ANSWER

D)  Provision for doubtful debts RIGHT ANSWER!!!


20)

Which of the following is the correct entry for bill payable acceptance?

A)  Bill payable Debit and creditor Credit WRONG ANSWER

B)  Creditor Debit and bill payable Credit RIGHT ANSWER!!!

C)  Cash Debit and bill payable Credit WRONG ANSWER

D)  Creditor debit and bill payable debit WRONG ANSWER