Start Demo Test – Examace

🎯 Free Demo Test – Try Before You Start

Experience the real exam simulation with this short demo test.

This sample test contains:

✅ 10 Multiple Choice Questions
✅ Total: 18 Marks
✅ Instant scoring & feedback
✅ Exam-style difficulty and structure

This demo is designed to give you a preview of the full test experience.

📌 Full Mock Exam Includes:

100 Multiple Choice Questions
Total: 100 Marks
Balanced Medium, Hard & Very Hard questions
Calculation, Data & Policy-based questions
Instant Results & Performance Analysis

👇 Start the Demo Test Below

Name

1. Identify when a credit note is issued to a customer.

A To correct an overcharge on an invoice

B To correct an undercharge on an invoice

C When goods are sold for cash

D When goods are sold for credit

(Total for Question 1= 1 mark)

2. Identify in which book of original entry a credit note received would be recorded in a customer’s books.

A Purchases

B Purchases returns

C Sales

D Sales returns

(Total for Question 2= 1 mark)

3. Identify where total discounts on the credit side of a cash book would be posted.

A Credit discounts allowed

B Credit discounts received

C Debit discounts allowed

D Debit discounts received

(Total for Question 3= 1 mark)

4. A trader includes the cost of small items of office equipment as expenses in the income statement. Identify which accounting concept is being applied.

A Accruals

B Business entity

C Materiality

D Prudence

(Total for Question 4= 1 mark)

5. Identify which account always has a credit balance.

A Carriage inwards

B Carriage outwards

C Returns inwards

D Returns outwards

(Total for Question 5= 1 mark)

6. Identify where the balance of the irrecoverable debts account is transferred to at the year end.

A Income statement

B Statement of financial position

C Trade payables ledger

D Trade receivables ledger

(Total for Question 6= 1 mark)

7. Gina sells goods on credit to Kimi for \$600. Gina’s terms of trade are 20% trade discount plus 5% cash discount for prompt settlement. Identify which entry in Gina's books is correct.

A $480 in the purchases day book

B $480 in the sales day book

C $456 in the purchases day book

D $456 in the sales day book

(Total for Question 7= 1 mark)

8. Identify which of the following would be recorded on the credit side of a trade payables ledger control account.

A Amounts paid to credit suppliers

B Contra with the trade receivables ledger control account

C Discount received from credit suppliers

D Interest charged by a supplier on late payment

(Total for Question 8= 1 mark)

9. Complete the document.

Description	Quantity	Unit cost ($)
Credit Note DP Traders 42 Bell Road Cardiff CF45 2BB
McBain Harrow House London E14 1AA		No. 6214 Date: 3 April 2020
Games	16	8.50
Batteries	112	0.75
Subtotal
Trade discount 20%
Total

(Total for Question 9= 5 mark)

10. Leon produced the following invoice.

Complete the document where indicated.

Quantity	Description	Unit cost $
Invoice Leon Spring Street Newport NP19 3HS
Phoenix 22 Kerry Drive Bradford BD8 6GK		No. 3240
Phoenix 22 Kerry Drive Bradford BD8 6GK		Date 29 March 2021
6	Mobile phones	85.50
36	USB cables	2.20
Subtotal
Trade discount 25%
Total

(Total for Question 10= 5 mark)