Time Left:
00
:
00 :
00
HRS
MIN
SEC
Time Spent: %%TIMESPENT%%
Time expired. Sorry, you will not be able to continue with this quiz. Please opt-in to see the result.
SEC
HRS
MIN
SEC
SEC
Total Time
[SQBTimeSpent]
0
HRS
0
MIN
0
SEC
10 Trade receivable and trade payable
This accounting quiz focuses on credit transactions, trade and cash discounts, journal entries, and financial statement classification. It covers topics like credit notes, recording purchases and sales, discounts, returns to suppliers, profit impact, classification of liabilities, and entries in accounts for different scenarios. It's designed for student revision.
TAKE THIS QUIZ
1%
What document will a business receive when they purchase goods or non-current assets on credit?
A) Credit note
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) Debit note
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) Invoice
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) Receipt
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
What are the correct journal entries to record a credit purchase of goods at a list price of $600 less a trade discount of 15%?
A) DR Inventory $510; CR Trade payable $510
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) DR Inventory $510 DR Trade discount $90; CR Trade payable $600
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) DR Inventory $600; CR Discount received $90 CR Trade payable $510
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) DR Inventory $600 Dr Discount allowed $90; CR Trade payable $510
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
A) To increase profits
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) To encourage late payments
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) To encourage early payments
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) To discourage payments
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
What are the journal entries when a business returns goods to its credit supplier due to wrong specification?
A) DR Inventory; CR Trade payables
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) DR Trade payable; CR Inventory
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) DR Cash at bank; CR Inventory
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) DR Sales revenue; CR Trade payables
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
How does a business receiving a cash discount from its supplier affect the profit for the period?
A) Increases profit
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) Decreases profit
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) No impact on profit
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) Increases revenue
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
If a business settles an amount owing of $1,000 to its credit supplier by issuing a cheque for $990, what does this imply?
A) Business incurred a loss
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) Business received a discount
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) Business overpaid
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) Business made an error
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
How are amounts owing to credit suppliers classified in the statement of financial position?
A) Current assets
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) Non-current liabilities
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) Current liabilities
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) Shareholders' equity
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
A) Credit side of the Trade Receivable account
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) Debit side of the Trade Receivable account
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) Credit side of the Trade Payable account
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) Debit side of the Trade Payable account
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
What are the correct journal entries to record a credit sale of goods at a list price of $800 with a trade discount of 20%?
A) DR Trade Receivable $640; CR Sales revenue $640
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) DR Trade Receivable $640 DR Discount Allowed $160; CR Sales revenue $800
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) DR Trade Receivable $800; CR Discount Received $160; CR Sales revenue $640
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) DR Trade Receivable $640; CR Discount Received $160; CR Sales revenue $800
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
A) amounts paid to credit suppliers
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) goods returned to credit suppliers
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) discount received from credit suppliers
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) interest charged on late payment
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
A) discount allowed
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) dishonoured cheque from customer
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) allowance for impairment of trade receivables
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) sales returns
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
Which of the following is the correct location for recording the allowance for impairment of trade receivable?
A) on the credit side of the trade payable ledger account
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) on the credit side of the trade receivable ledger account
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) on the debit side of the trade payable ledger account
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) on the debit side of the trade receivable ledger account
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
A) Discount allowed appears on the credit side.
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) Discount allowed appears on the debit side.
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) Discount received appears on the credit side.
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) Discount received appears on the debit side.
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
On 1 October 2025 Padilla Industries owed Nonsense Trading $40 000. During the month, the company made credit purchases totalling $33 000. The business also made payments by cheque of $48 000. On 31 October 2025 the balance owed by Padilla Industries to Nonsense Trading is
A) $25 000
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsB) $41 000
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsC) $55 000
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsD) $121 000
A text area will be displayed in the frontend when users select this answer.
Add RecommendationAdd TagsView All Assigned TagsNext
%%QUESTIONANSWERS%%
Skip Opt-in
Almost there...
Where can we email you the results? Please enter details below.
You got a score of %%YOURSCORE%% out of %%TOTALSCORE%%
Students who fail may benefit from reviewing the concepts of credit transactions, trade and cash discounts, journal entries, and financial statement classification in more detail.
Keep practicing and seek additional help from your instructor or online resources to strengthen your understanding of the topics covered in the quiz.
Suggestions for Improvement:
- Focus on grasping the fundamental principles of accounting.
- Practice more exercises to enhance comprehension and application skills.
Keep practicing and seek additional help from your instructor or online resources to strengthen your understanding of the topics covered in the quiz.
Suggestions for Improvement:
- Focus on grasping the fundamental principles of accounting.
- Practice more exercises to enhance comprehension and application skills.
Product Title
Buy Now
Product Title
Buy Now
Product Title
Buy Now
Product Title
Buy Now
Product Title
Buy Now
Product Title
Buy Now
Product Title
Buy Now
Continue
%%CATEGORY_TOTAL_PERCENT%%
%%CATEGORY_TOTAL_NUMBER%%
[CATEGORY_TOTAL_PERCENT]
[CATEGORY_ONLY_PERCENT]
[CATEGORY_TOTAL_NUMBER]
Retake
YOUR TOTAL POINTS
0