5 Written questions
5 Matching questions
- Cash payments journal
- Personal loan
- Discount allowed
- Accumulated depreciation
- a 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.
- b A loan extended to individuals on a personal basis.
- c A multi-column, special journal where all cash payments are recorded.
- d The cumulative amount of depreciation that has been charged as an expense since the asset was acquired.
- e An exclusive right to produce and sell a particular product or process for a number of years.
5 Multiple choice questions
- A multi-column, special journal where all cash receipts are recorded.
- The truth is rarely pure and never simple.
- urgent issues consensus group.
- Characteristic of a partnership whereby each partner is an agent for the partnership and can bind the other partners to a contract if acting within the normal scope of the business.
- Transaction where cash is received or paid after the benefit is received or consumed.
5 True/False questions
Relevance → That quality of financial information that exists when information influences decisions by users about the allocation of scarce resources. (SAC 3).
External decision makers → Users of accounting information who operate from within an organisation e.g. owner/manager, manager.
ASIC → Australian Securities and Investment Commission.
Financing activities → Activities which relate to the raising of funds by an entity; activities that affect equity and non-current liabilities.
Residual value → Estimated net amount to be recovered on the disposal of an asset at the end of its useful life.