13 Accounting

Conceptual Basis of Accounting

100

Which accounting concept means that personal assets of the owner should be kept separate from the business' assets.

Accounting Entity Concept

200

Which Financial Elements are affected by the following transaction?

"Paid $2,150 for accounts payable"

Assets - Bank

Liabilities - Accounts Payable

300

What effect would a net loss have on the Owner's Equity section of the business' Statement of Financial Position.

Decrease the Owners' Equity Section

400

Which accounting concept states that all information related to the success of the business must be disclosed or made known?

Disclosure Concept

500

Transactions that would have an impact on the net profit of the business, what are they called?

Revenue Transactions

Processing

100

Which accounting process comes after adjusted trial balance

Financial Statements

200

Which Journal would the following transaction be recorded in?

Debtor paid his full account on cash.

Cash Receipts Journal

300

Give one of the systems used by accountants to record and maintain financial data.

manual & computerized systems

400

State the journal entry for the following balance day adjustment.

"Interest on loan of $500 has not been recorded"

Dr Interest on Loan

Cr Accrued Expense

500

Which table gives a clear idea that both the uses and sources of funds of the business are equal?

Trial Balance

Accounting Subsystem

100

When a task is divided into smaller duties or jobs to ensure that the assets, especially cash, are safe, what is that called?

Separation of Duties

200

When debtors face bankruptcy, and cannot pay their debts, what is the possible action taken by the business?

Write off account as bad

300

What is the accounting term for individual ledger accounts for accounts payable?

Accounts Payable Subsidiary ledger

400

Which inventory system states that the selling prices for inventories are determined by dividing cost of goods available for sale by the total number of goods available.

Weighted average cost

500

"All money received should be evidenced by a document" is an example of a control measure over what asset?

Cash

Accounting Reports

100

To determine the total net profit of the business is one of the functions of which Financial Statement?

Statement of Financial Performance

200

Movements of cash in and out of the business is summarized in which statement?

Statement of Changes in Cash Position / Statement of Cash Flow

300

Give the different categories of Expenditure shown in the Statement of Financial Performance

Selling & Distribution

General & Administrative
Financial Expenses

400

The financial statement which contains information related to a single or particular activity. Which financial statement is that?

Trading Account

500

Give the formula for calculating working capital

Current Assets less Current Liabilities