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I. Choose the correct answer for each question below:

1. Each month the amount of money that you owe on a store credit card is paid automatically and directly to the store out of your bank account. The amount and the precise date of payment will vary each month.

What is this an example of?

A A standing order

B A credit transfer

C A mail transfer

D A direct debit

2. Which of the following constitute a contractual relationship between a bank and its customers?

(i) Receivable/Payable

(ii) Principal/Agent

(iii) Mortgagor/Mortgagee

(iv) Customer/Supplier

A All

B (i) and (iv) only

C (i) and (ii) only

D (i), (ii) and (iii) only

3. What is the effect upon net assets when inventory is purchased on credit?

A Net assets and owners capital do not change

B Net assets increase and owners capital increase

C Net assets decrease and owners capital decreases

D Net assets increase and owners capital stays the same

4. On 1 February the credit balance on Josh's Sales tax account was $2,400. During the month, sales tax on sales was $1,050, sales tax on purchases and other expenses was $900 and a repayment of sales tax was received of $200.

What was the credit balance on the sales tax account at 28 February?

A $2,050

B $2,350

C $2,450

D $2,750

5. Trevor's basic working week is 40 hours, and his basic rate of pay is $7 per hour. Overtime is paid at the rate of time and a half. In a given week, Trevor worked 46 hours. What was Trevors gross pay be for that week?

A $301

B $343

C $385

D $483

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