5 Written questions
5 Matching questions
- Accounting equation
- Bank statement
- a Goods acquired for resale.
- b The name given to all the individual ledger accounts that an entity keeps.
- c assets = liabilities + equity
This equation is sometimes expressed as equity = assets - liabilities. The extended form of the accounting equation is assets = liabilities + equity + (revenue - expenses).
- d Chartered Accountant. Accountant who is a member of the Institute of Chartered Accountants in Australia (ICAA).
- e A copy of the client's account with the bank for a given period supplied by the bank to the client.
5 Multiple choice questions
- Documents that provide details of transactions, e.g., cheque butts, credit notes, invoices, cash register tapes, credit card vouchers.
- The excess of net sales over cost of goods sold.
- One method of calculating depreciation; this method results in a decreasing depreciation charge over the life of the asset.
- A financial plan.
- Enter a transaction in the accounting records.
5 True/False questions
Bankruptcy → Residual interest in the assets of the entity after deducting liabilities (SAC 4 definition) Equity is the owners' stake in the business. It consists of owners' contribution, plus accumulated profits, less accumulated losses, less withdrawals.
Drawings → Financial Reporting Council.
Accounts payable sub-system → Accounting sub-system that deals with recording the amounts owed by customers and ensuring that they pay their accounts in a timely manner.
Director → Enter a transaction in the accounting records.
Net loss → Australian Accounting Standards Board.