Have an account?
Skip to Content
Build your own quiz
Suggestions for you
14 questions
Show Answers
See Preview
- 1. Multiple Choice
The life of the business is divided into arbitrary time periods - this is known as
Matching Principle
Accounting Period Assumption
- 2. Multiple Choice
Revenues which have been earned in the current accounting period but have not yet been paid or recorded.
Unearned Revenues
Accrued Revenues
- 3. Multiple Choice
The difference between the revenues earned from the sale of goods and the cost of goods sold.
Gross Profit
Net Profit
- 4. Multiple Choice
A detailed expression of the accounting equation for a business at a certain point in time.
Statement of Profit or Loss
Statement of Financial Position
- 5. Multiple Choice
This is when revenue is shown in the records ie money than is earnt is recorded in the books.
Realising the Revenue
Recognising the Revenue
- 6. Multiple Choice
This Financial Year is between:
1 January 2019 - 31 December 2019
1 August 2018 - 31 July 20198
1 July 2018 - 30 June 2019
- 7. Multiple Choice
Profit = revenues - expenses relates to the following accounting principle:
Profit Principle
Matching Principle
Earning Principle
- 8. Multiple Choice
This is known as when the effects of the transactions are recognised only when cash is received or paid out.
Cash Accounting
Accrual Accounting
- 9. Multiple Choice
Occurs when expenses that have been paid and recorded in the current accounting period but will not be incurred until the future accounting period.
Prepaid Expenses
Accrued Expenses
- 10. Multiple Choice
Entries made at the end of the Financial Year which match the revenues and expenses accurately so that profit can be determined, and to bring into account assets and liabilities not previously recorded.
Accrual Accounting
Balance Day Adjustment
Recognising the Revenue and Expense
- 11. Multiple Choice
To increase a revenue to show the amount for the actual accounting period you need to:
Debit the Revenue account
Credit the Revenue account
- 12. Multiple Choice
To decrease the expense account to reflect the correct amount for the accounting period you:
Credit the expense account
Debit the expense account
- 13. Multiple Choice
To record the General Journal entry for prepaid expenses is:
Prepaid Expense A/c DR
Expense A/c CR
Expense A/c DR
Prepaid Expense A/c CR
Prepaid Expense A/c CR
Revenue A/c CR
- 14. Multiple Choice
To record and accrued Revenue in the General Journal is:
Unearned Revenue A/c DR
Accrued Revenue A/c CR
Accrued Revenue A/c DR
Revenue A/c CR
Revenue A/c DR
Accrued Revenue A/c CR
- Answer choicesTagsAnswer choicesTags