5 Written questions
5 Matching questions
- Cash payments journal
- Net worth
- Limited liability
- Mutual agency
- a Certified Practising Accountant. Accountant who is a member of the Australian Society of Certified Practising Accountants (ASCPA).
- b 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.
- c Most companies are incorporated with limited liability (indicated by Ltd in their title). This means, in the event of company failure, the shareholders can only lose what they have invested in the company (if they hold partly paid shares they may be liable for an additional contribution of the unpaid amount on these shares).
- d A multi-column, special journal where all cash payments are recorded.
- e Residual interest in the assets of the business after deducting its liabilities; the equity in the business.
5 Multiple choice questions
- An exclusive right to produce and sell a particular product or process for a number of years.
- The excess of revenue over expenses.
- Underlying accounting assumption that, for reporting purposes, the life of a business can be divided into arbitrary, equal time-intervals.
- An amount owing to an entity that is written off as not being able to be collected.
- The excess of net sales over cost of goods sold.
5 True/False questions
Operating activities → Activities which relate to the raising of funds by an entity; activities that affect equity and non-current liabilities.
Revenue → Inflows or other enhancements, or savings in outflow of future economic benefits in the form of increases in assets or reductions in liabilities, other than those relating to contributions by owners, that result in an increase in equity during the reporting period.
Relevance → Document prepared by the seller as evidence of a sale. The original is sent to the purchaser and the copies are kept by the seller.
Accumulated depreciation → One method of calculating depreciation; this method results in a decreasing depreciation charge over the life of the asset.
Classification → The arrangement of information in accounting reports to make it more meaningful to the user.