O-LevelAccountingAccounting procedures7707/11 · May/June 2010 · Q81 Mark

A trader prepares a ledger account using the running balance method. Which statement is correct?

AThe balance is shown after each transaction.

BThe balance is shown only at the month end.

CThere are fewer calculations than in a traditional 'T' account.

DThis method is not suitable for computerised accounts.

✓ Correct answer

A: The balance is shown after each transaction.

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2010 Paper 1 Variant 1, question 8.

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