5 Written questions
5 Matching questions
- Public practice
- Residual value
- Separation of duties
- Manual accounting system
- Return on investment
- a Accounting system in which recording and report preparation are carried out by hand rather than via a computer.
- b Accounting firms that offer a variety of services to many different clients.
- c To minimise the possibility of errors or fraud the various parts of a transaction should be divided between two or more persons so that the work of one checks the work of another. For example, one person should order goods and another should pay for them.
- d Estimated net amount to be recovered on the disposal of an asset at the end of its useful life.
- e Net profit as a percentage of total assets/total funds invested.
5 Multiple choice questions
- Specified time period at the end of which accounting reports are prepared.
- The process of forming a company or other incorporated entity, e.g., club.
- Ongoing investigation as to compliance with policies and procedures carried out by designated staff within an organisation.
- The accounting sub-system that deals with recording and reporting all aspects of employee entitlements.
- A journal entry made at regular intervals.
5 True/False questions
Accrued revenue → Meets the definition of an asset under SAC 4. It is revenue earned but not received at balance date).
Estimated useful life → Period of time a non-current asset is expected to be used by an entity.
Operating activities → Activities relating to the purchase or sale of the non-current assets of an entity.
Cash payments journal → A multi-column, special journal where all cash payments are recorded.
Drawings → Future economic benefits controlled by the entity as a result of past transactions or other past events (SAC 4).