GCE Ordinary Level — Business & Accounting Studies Quiz

Q1
What is the prime entry book used to record the cash received from selling goods?
Sales journal
General journal
Cash book
Purchases journal
Q2
Kamal obtained a bank loan of Rs. 600 000 on 01.09.2023 at an annual interest rate of 10%. The loan interest is payable annually on 31.08.2024. According to the financial statements of this business prepared for the year ended 31.12.2023, which one of the following statements is correct?
loan interest expense in the Profit or Loss Statement is Rs. 60 000.
loan interest payable in the Statement of Financial Position is Rs. 60 000.
loan interest payable in the Statement of Financial Position is Rs. 20 000.
loan interest payable in the Statement of Financial Position is Rs. 40 000.
Q3
Amal buys 5 kg of sugar from a nearby grocery store for his family's daily consumption. This transaction is an example of:
Wholesale trade
Retail trade
Foreign trade
Export trade
Q4
Which of the following is an example of an adjusting entry recorded in the general journal?
Recording the payment of monthly salaries by cash
Recording the depreciation of motor vehicles for the year
Recording the cash received from a debtor
Recording the purchase of goods on credit
Q5
Nimal purchased a mobile phone and paid for it using his bank's debit card. To complete this transaction successfully, Nimal must have:
A credit card issued by the same bank.
A fixed deposit account with a balance equal to the phone's price.
A savings or current account with sufficient available funds (including any authorised overdraft).
No prior bank account, as the bank provides a temporary loan.
Q6
Which of the following items is recorded in the trading account of a business?
Carriage outwards
Carriage inwards
Salaries for sales personnel
Discount allowed
Q7
Sandun wishes to open a fixed deposit account by depositing Rs. 500,000 for a period of one year. Which of the following is a necessary condition he must follow regarding this account?
He must obtain a cheque book immediately upon opening the account.
He must agree to keep the money deposited until the maturity date to receive the agreed interest.
He must provide a guarantor who already holds a current account in the same bank.
He must apply for a credit card linked to the fixed deposit account.
Q8
Read the following activities performed by the manager of a restaurant. A - Instructing and motivating the chefs to prepare a special menu for a festival. B - Checking customer feedback forms to ensure food quality standards are maintained. C - Allocating funds to renovate the dining area. D - Setting a goal to increase daily customers by 20%.

Which of the above activities represent 'leading' and 'controlling' respectively?
A and B
C and D
A and C
D and B
Q9
"A sports equipment manufacturer decides to design a new lightweight cricket bat for junior players." Select the correct answer that indicates the management function and the marketing mix variable highlighted in this statement respectively.
Planning and product
Organizing and price
Planning and promotion
Controlling and product
Q10
The trial balance of Kamal's business as at 31.12.2022 showed a trade debtors balance of Rs. 85 000. Further information revealed that a debtor of Rs. 5 000 has been declared bankrupt and the amount is to be written off as a bad debt. The amount of trade debtors to be shown in the Statement of Financial Position as at 31.12.2022 is
Rs. 90 000.
Rs. 85 000.
Rs. 80 000.
Rs. 5 000.