5 Written questions
5 Matching questions
- Manual accounting system
- Accounting sub-systems
- Bank statement
- a A copy of the client's account with the bank for a given period supplied by the bank to the client.
- b Parts of the accounting system that deal with specific functions, e.g., payroll, accounts receivable, fixed assets.
- c Accounting system in which recording and report preparation are carried out by hand rather than via a computer.
- d Finding the balance of a T-form ledger account.
- e An underlying accounting concept which requires that accountants provide all relevant (material) information to users of financial statements.
5 Multiple choice questions
- 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.
- Meets the definition of a liability under SAC 4. They are expenses incurred but not paid at balance date.
- Accounting sub-system involving the recording and control of goods for resale.
- Posting references are completed when the journal information is transferred to the ledger. In the journal they consist of the ledger account numbers to which the posting is made. In the ledger they consist of an abbreviation of the page of the journal which is the source of the entry, e.g., GJ2 = General Journal page 2.
- Chartered Accountant. Accountant who is a member of the Institute of Chartered Accountants in Australia (ICAA).
5 True/False questions
Record → Enter a transaction in the accounting records.
Ledger → A financial plan.
Cost of goods sold → Total expenses incurred in acquiring and getting ready for sale the inventory that has been sold during the accounting period. Cost of goods sold is deducted from sales revenue in the Statement of Financial Performance.
Accumulated depreciation → The allocation of the cost of a non-current asset over its estimated useful life.
Perpetual inventory method → Meets the definition of an asset under SAC 4. They are payments made prior to the consumption of the goods or services and thus provide a future benefit.