...of you? 1 Which is not the purpose of a trial balance
A to aid preparation of final accounts
B to check arithmetical accuracy of the double entry bookkeeping
C to help locate arithmetical errors
D to prove that double entry has been carried out without errors
2 What is the significance of a preference share being described as cumulative?
A Dividend will always be paid on such shares
B Each year dividend per share increases
C The dividend will always be greater than those paid on ordinary shares
D None of the above
3 A business paid 1800 for insurance in 2005. A prepayment of 150 had been brought forward from 2004. How much is charged to profit and loss account in 2005?
A 1650
B 1800
C 1950
D 2100
A to aid preparation of final accounts
B to check arithmetical accuracy of the double entry bookkeeping
C to help locate arithmetical errors
D to prove that double entry has been carried out without errors
2 What is the significance of a preference share being described as cumulative?
A Dividend will always be paid on such shares
B Each year dividend per share increases
C The dividend will always be greater than those paid on ordinary shares
D None of the above
3 A business paid 1800 for insurance in 2005. A prepayment of 150 had been brought forward from 2004. How much is charged to profit and loss account in 2005?
A 1650
B 1800
C 1950
D 2100