5 Written Questions
5 Multiple Choice Questions
- This is day to day business expenditure where the benefit will be used up in the current financial period.
- The life of the business is divided into nominated periods.
- The financial affairs of the owner are kept separate and distinct from the financial affairs of the business.
- These are present obligations of the business as a result of past transactions, which are expected to result in an outflow of resources representing economic benefits in the future.
- This is expenditure that creates an asset and will benefit the business beyond the current financial period.
4 True/False Questions
Expenses → Expenses are decreases in economic benefits in the form of outflows or depletions of assets or increases in liabilities that result in decrease in equity, other than drawings
Income → These are resources controlled by the entity as a result of past transactions, from which economic benefits are expected to flow to the entity.
Depreciation → Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.
Accrual Basis → The effects of transactions are recognised when they occur and they are recorded in the accounting records and reported in the financial statements of the periods to which they relate.