5 Written questions
5 Matching questions
- Straight line depreciation
- Accounting period concept
- Trade mark
- Internal decision makers
- a A method of calculating depreciation which spreads the cost of the asset evenly over its useful life.
- b Users of accounting information who operate from within an organisation e.g. owner/manager, manager.
- c Logo or name registered for the exclusive use of an organisation to distinguish its products and services.
- d Underlying accounting assumption that, for reporting purposes, the life of a business can be divided into arbitrary, equal time-intervals.
- e Future sacrifices of economic benefits that the entity is presently obliged to make to other parties.
5 Multiple choice questions
- 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.
- Accounting entries made at the end of each accounting period to achieve a proper allocation of revenue and expenses to the relevant accounting period.
- Meets the definition of a liability under SAC 4. They are expenses incurred but not paid at balance date.
- Transaction where cash is received or paid after the benefit is received or consumed.
- Document prepared as evidence of the return of goods or the adjustment of the price of goods or services.
5 True/False questions
Sales returns journal → Record in which transactions may be recorded if not recorded in specialised journals.
Accounting records → The system (documents, books, files) in which financial transactions are recorded.
Disclosure → A document that is used to record the number of hours an employee has worked.
Bank reconciliation → Incentive payment received or paid for performing or receiving a service.
Amortisation → The process of allocating the cost of an intangible asset over the accounting periods benefiting from its use. Refer to depreciation.