5 Written questions
5 Matching questions
- Credit sale
- a Become liable for.
- b 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.
- c Distribution made from profits by a company to its shareholders (owners): usually paid in cash but can be in the form of shares.
- d Sale where the customer pays for the goods or services after the benefit is received.
- e That quality of financial information that means it can be depended upon to represent faithfully, and without bias or undue error, the transactions or events that either it purports to represent or could reasonably be expected to represent (SAC 3).
5 Multiple choice questions
- Accounting sub-system involving the recording and control of goods for resale.
- A process of capturing and recording transactions, preparing reports and analysing, interpreting and communicating information to assist in, and enhance, business decision-making.
- Australian Securities and Investment Commission.
- The truth is rarely pure and never simple.
- An amount owing to an entity that is written off as not being able to be collected.
5 True/False questions
Partnership agreement → A relationship between two or more persons, carrying on a business, in common, with a view to profit.
Accounting reports → The sequence of accounting procedures from transactions, to journals, ledgers, a trial balance and financial reports (including balance day adjustments) that takes place during an accounting period.
Sales returns journal → A special journal used to record the return by customers of goods acquired on credit.
Conceptual framework → Policies and procedures designed to safeguard assets and ensure the accurate and reliable functioning of the accounting system.
Posting references → Entries made at the end of the longest time period for which revenue and expenses information needs to be kept (usually a year) to set the revenue and expense accounts back to zero and transfer net profit and drawings to the owner's capital account.