Accounting as a Profession and System
What is accounting consider with?
What is, recording data, classifying and summarizing it and communicating what has been learnt from the data.
Complete the statement.
For every debit there is an equal and corresponding (blank) and for every credit there is an equal and corresponding (blank).
What is, credit and debit in that order
Which type of asset depreciate?
What is, Fixed Assets
What is the difference between Bad Debt and Allowance/ Provision for Bad Debts?
What is, ........
What is the purpose of preparing the Income Statement?
What is, to show profitability
Give one example of an internal and one example of an external user of accounting information.
Any of your choice
The purchases A/c is used for the purchase of
What is, goods only
Give 2 reasons for Depreciation.
What is, any two of your choice.
Is a Prepaid Expense, Current Asset or Current Liability?
What is, Current Asset
The Balance Sheet contains only
What is, Assets, Liability and Capital
Give any three code of ethics that the accounting should follow.
Any of your choice, what is Integrity, Objectivity, Professional Competence and Due Care, Confidentiality and Professional Behaviour.
What is the purpose of the Drawings A/c?
What is, to record capital taken out from the business by the owner for his personal use.
What is the purpose for the Accumulated Provision for Depreciation A/c?
A debt of $100 owing from Mark was written as bad debt on May 31, 2022.
What is, Debit Bad Debt Expense $100 and Credit Mark A/c $100
What is, Current Assets - Current Liabilities
Which accounting assumption best describes the statement below?
The business continues for the foreseeable future even if the owner passes away.
What is going concern.
Give the double entry record for the following transaction.
Bought Van on credit from Massy Motors Ltd for $12000 on January 9th, 2023.
What is,
Debit Van $12000 and Credit Massy Motors Ltd $12000
A computer was bought for $5000 and at the end of 8 years, we sold it for $1000. How much has the computer depreciation per year.
What is, $500 per year
Complete the statement below.
An increase in Provision for Bad Debt is an (Blank) in the Income Statement while a Decrease in Provision for Bad Debts is a (Blank) in the Income Statement.
What is, Expense and Revenue in that order.
Where would prepay revenue be under in the Balance Sheet?
What is, Current Liabilities
Give the Steps in a 7 Step Accounting Cycle.
In correct order.
Give the double entry record for the following transaction below.
Sold goods to Mike for $500 on January 1, where he paid us $200 in cash and the remaining amount is to be later on a later date.
What is, Debit Cash $200 and Credit Sales $200
Debit Mike A/c $300 and Credit Sales $300
A machine was bought for $12500 on Jan 1,2022. After one year, on Jan 1, 2023, the cost of the machine is $9375.
Calculate the Net Book Value of the Machine for Jan 1, 2024, if depreciation is to be calculate using the reducing balance method at a rate of 25%.
What is, $7031.25
Provision for Bad Debts is to be estimated by 2% per year. Calculate the change in provision for bad debts from Dec 31, 2021 to Dec 31, 2022 if Account Receivables at the end of those years $20000 and $21500 respectively.
What is, $30
Give the sets in calculating Cost of Goods Sold.
What is, ...