5 Written questions
5 Matching questions
- Current liability
- Inventory sub-system
- Trial balance
- a An obligation that is due for payment within one year of the balance date.
- b Accounting sub-system involving the recording and control of goods for resale.
- c List of ledger accounts and their balances at a given date.
- d The ability of an entity to meet its debts as they fall due. Also refers to the ability of an asset to be converted into cash.
- e The Institute of Chartered Accountants in Australia.
5 Multiple choice questions
- An expense that arises when a credit customer is permitted to settle his/her account for less than the amount owning in return for prompt payment.
- The units into which a company's capital is divided.
- Parts of the accounting system that deal with specific functions, e.g., payroll, accounts receivable, fixed assets.
- Owners of a company.
- An exclusive right to produce and sell a particular product or process for a number of years.
5 True/False questions
Net profit → The excess of revenue over expenses.
Drawings → Statements of accounting concepts. Statements issued as part of the conceptual framework:
SAC 1 — Definition of the Reporting Entity.
SAC 2 — Objective of General Purpose Financial Reporting.
SAC 3 — Qualitative Characteristics of Financial Information.
SAC 4 — Definition and Recognition of the Elements of Financial Statements.
Internal reporting → Reporting to management within an organisation
Production units → A method of calculating depreciation which is based on asset usage.
Current asset → A professional person involved in the accounting functions, both for individuals and organisations.