5 Written questions
5 Matching questions
- Accrued expense
- Prepaid revenues
- Bank reconciliation
- Intangible assets
- a Assets that do not have a physical form, e.g. patents, goodwill, copyrights, brand names.
- b The process of comparing a business's cash records with its bank statement and preparing a statement listing the reasons for the differences.
- c Meets the definition of a liability under SAC 4. They are expenses incurred but not paid at balance date.
- d meets the definition of a liability under SAC 4. They are amounts received in advance of performing services or selling goods. They may need to be refunded if the entity does not meet its obligations.
- e An entry that increases an asset or decreases a liability or decreases equity, that is made in the left-hand column of a columnar ledger account or on the left-hand side of a T-ledger account. Verb. The action of recording a debit.
5 Multiple choice questions
- Instructions concerning design, use, recording procedures and reports to be produced, in relation to an organisation's accounting system.
- A method of calculating depreciation which is based on asset usage.
- List of ledger accounts and their balances at a given date.
- Certified Practising Accountant. Accountant who is a member of the Australian Society of Certified Practising Accountants (ASCPA).
- Policies and procedures designed to safeguard assets and ensure the accurate and reliable functioning of the accounting system.
5 True/False questions
Net worth → An amount owing to an entity that is written off as not being able to be collected.
Financial accounting → A method of accounting where all transactions (i.e., cash and credit) are recorded. Revenue is recorded in the accounting period when the goods are sold or the services are performed irrespective of when cash is received. Expenses are recognised when resources are consumed in the process of earning revenue, irrespective of when cash is paid.
Statement of financial position → Statement listing what the business controls and owes at a given point in time. The statement of financial position is a detailed expression of the accounting equation: assets = liabilities + equity.
Working capital → Excess of current assets over current liabilities.
Trade mark → Logo or name registered for the exclusive use of an organisation to distinguish its products and services.