All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Ask a Question
AI Study Help New

Search
Sign In
Register

study help
business
accounting and finance

Questions and Answers of Accounting and Finance

One of the criticisms of accounting information has been:a. The information is always incorrectb. Accountants never follOW rules and regulationsc. Inflation is not normally reflected within the
Obtain an annual report of a trading company (see References at the end of this chapter).Produce a vertical and horizontal analysis of the company's income statement, balance sheet and cash flow
The management of Ercall Limited pays particular attention to the ratios and percentages which they calculate from their annual accounts. For the year ended 31 December 2009, they have calculated the
The balance sheets of Rodington Ltd and Rowton Ltd at 31 May 2009 were as follows:Notes:1 The profits of Rodington Limited are expected to continue at £40,000 p.a. The profits of Rowton Limited have
Uffington Limited was formed on 1 January 2009. The company's unpublished income statement for 2009 and its balance sheet as at 31 December 2009 are as follows:The company is about to embarl~ on an
a Explain the need for, and give examples of, controls within a bookkeeping system.b From the following information, produce receivables ledger and payables ledger control accounts, showing the
The details of the bank account shown in the cash book of Tina Ford's practice for May are as follows:a After checking the cash book entries against the bank statement, update the cash book at 31 May
a Explain how the accruals principle affects the information to be disclosed within an income statement.b Write up the relevant general ledger accounts of Polly Harris for the year ended 30 April
a Define depreciation and explain its relevance to key accounting principles.b Show the relevant non-current asset accounts and depreciation accounts from the following information for each of the
From the following information relating to Louise Jones, prepare the income statement for the year ended 30 November 2009 and a balance sheet as at that date. Assume that relevant expense totals have
Profit is calculated by:a. Comparing assets with liabilitiesb. Comparing assets with expensesc. Comparing revenue with expensesd. Comparing revenue with liabilities
An independent auditor is:a. An independent accountant who prepares the financial summariesb. An independent accountant who reports on whether financial summaries show a true and fair viewc. An
The income statement of a partnership which manufactures the goods it sells will include:a. Cost of manufacturing, gross and net profit calculations and an appropriation accountb. As (a) but without
For a soft drinks factory, direct costs could include:a. The cost of machinery used to liquidise orangesb. Depreciation of a bottle washing machinec. Factory rentd. Flavourings
Which of the following headings is not part of the 'cost of manufacturing' calculation?a. Prime cost of tradingb. Total cost of manufacturingc. Raw materialsd. Indirect factory costs
A company has opening inventory £3,900, closing inventory £2,800, purchases£18,650, carriage inwards £850 and purchases returns £1,600. What is its cost of sales?a. £22,200b. £12,200c.
In a manufacturing company which also buys completed goods for resale, 'cost of sales' is found by the formula:a. Opening inventory of raw materials + Purchases + Cost of manufacturing - Closing
A horizontal layout for an income statement is:a. The same as a columnar formatb. Where the information is read from top to bottomc. Where the account has debit and credit sidesd. Always required by
Which one of these is not an expense?a. Carriage inwardsb. Carriage outwardsc. Discount allowedd. Discount received
Which type of business organisation has to publish its income statement?a. Public limited companyb. Conventional partnershipc. Architectd. Sole proprietorship
From the following information, prepare detailed income statements for each business. Name: Type of business: Year ended: Amber Manufacturer Blue Trader 30 April 2009 31 May 2009 Cerise Service
From the following information, produce the income statement of Wesley Timpson for the year ended 30 November 2009. Bank interest received Carriage inwards 140 6,200 Carriage outwards 900 Closing
From the following trial balance and notes relating to Betta Buys, prepare an income statement for the year to 28 February 2010, and a balance sheet as at that date. 3 W Dr 34 Cr Bank 960 Cash 250
Helen Thorne, a retail jeweller, extracted the following trial balance for her business as at 31 May 2009. Dr Cr Revenue 324,650 Customer returns 1,250 Opening inventory, 1 June 2008 34,500
A business sells an asset on 1 January for £8,000. The asset was bought exactly three years previously for £24,000 and depreciation was charged at 30% p.a. on the diminishing balance method. What
A profit on the disposal of a non-current asset can also be described as:a. An over-provision for depreciation on the assetb. An increase in non-current assets on the balance sheetc. An increase in
What is the effect of overvaluing closing inventory on the current year's profit?a. Decreases the gross profit and net profitb. Increases the gross profit but decreases net profitc. Decreases the
Applying the FIFO method of inventory valuation in a period of rapidly riSing prices will result in:a. Inventory valued at low pricesb. Inventory valued at high pricesc. Inventory valued at average
Why can LIFO not be used to compute profits under accounting standards?a. It results in irrelevant and out-dated inventory valuesb. It would result in high profits, and the Accounting Standards Board
A company bought 50 dresses at £40 each. Normal selling price is £60 each but the dresses are now thought to be old-fashioned and have to be shortened at a cost of £5 each. What should be their
What is a bad debt?a. A debt where there is some hope of getting paidb. A debt where there is no hope of getting paidc. A debt which is doubtfuld. A debt where the customer has gone to a different
Graham Pici{le is owed £400 by Harvey Willow. Graham now regards Harvey as a bad debtor. What will be the effect of writing off the debt as bad?a. No effect on profit, but receivables decreaseb. The
A business starts its year with £800 in a provision for doubtful debts. At the end of the year, receivables total £12,000 of which £600 are considered doubtful. What is the effect on the income
A non-current liability is:a. A payable due for payment within 12 monthsb. A liability where it is not known when it is to be repaidc. A payable due for payment after more than 12 monthsd. The same
Straits Liners is a shipping company which at 1 January 2009 owned the following vessels:• SS Invisible, bought for £450,000 on 1 July 2004• SS Submersible, bought for £600,000 on 1 August
Martha started business on 1 October 2004 buying and selling computer mouse mats. Each year in October she placed an order for mats with the North Caledonian Mouse Mat Company. During her first four
Trimmings pic manufactures textiles which are sold to fashion designers to be made into garments.Although the majority of patterns in inventory at 31 May 2009 were likely to be sold at prices
Bioldley Brothers sell luxury picnic hampers from their prestigious shop in London. When the firm 's accountant drew up the list of receivables ledger balances at the business's year-end, 31 May
Management accounting is:a. Used to make the business more cost-efficientb. Required by the Companies Actc. Used only by people outside the businessd. Used to prepare a trial balance
Double-entry bookkeeping means:a. There are two doors leading into the accountant's officeb. Every transaction is entered twice on the debit side and twice on the credit sidec. Transactions are
GAAP stands for:a. Generally Available Accounting Practicesb. Generally Accepted Accounting Principlesc. Government Authorised Accounting Principlesd. Give Accountants A Present
Which of the following is a key accounting principle?a. Prepaymentsb. Bad debtsc. Gone Concernd. Comparability
Current assets include:a. Inventory, receivables and prepaymentsb. Inventory, receivables and accrualsc. Inventory, payables and prepaymentsd. Inventory, payables and accruals
Depreciation is calculated because:a. Most non-current assets tend to lose value over timeb. Money must be set aside to replace the assets.c. Every non-current asset loses value over timed. The
Non-current liabilities are those which:a. Are due for repayment in less than one yearb. Are never repaidc. Are due for repayment after more than one yeard. Will be repaid in one year's time
'Drawings' is shown on the balance sheet as:a. An addition to the capital accountb. A deduction from the capital accountc. Part of current liabilitiesd. Part of current assets
The accounting equation can be written as:a. Assets - Expenses = Liabilities + Capital + Revenueb. Assets + Expenses = Liabilities - Capital + Revenuec. Assets + Expenses = Liabilities + Capital -
Which of the following will result in a change in capital?a. A non-current asset bought by the business for £10,000b. A profit made by the organisationc. A payment received from a customerd. A
A grocer buys a delivery van from Homer Motors for £9,000 by cheque. The entries to be made in the grocer's accounting system are:a. Debit Delivery van, Credit Bankb. Debit Purchases, Credit Bankc.
Another name for the impersonal ledger is:a. Payables ledgerb. General ledgerc. Receivables ledgerd. Cash ledger
In a business's bank account as shown in its cash book, a debit balance means:a. The business has paid out too many chequesb. The business owes the bank some moneyc. The business has an overdraftd.
'Receivables' are:a. Customers who owe money to the businessb. Customers who buy goods for cashc. Suppliers who are owed money by the businessd. Suppliers who have been paid by the business
A jam factory pays £3 for a stapler for use in its office. How would this be shown in the financial summaries?a. As a non-current asset in the balance sheetb. As purchases in the income statementc.
The imprest system is used to control which of the following?a. The design of the company's advertising campaignsb. Petty cash expenditurec. The rate of pay of employeesd. The amount of money the
If a ledger account has debit entries totalling £450 and credit entries totalling £200, the balance on the account is:a. Credit balance £250b. Debit balance £250c. Debit balance £650d. Credit
During a month a business spends £195 on petty cash items and pays into petty cash a£5 note which the owner had borrowed previously. There was a cash float of £200 at the start of the month. Using
An unpresented cheque is:a. A cheque which has not been processed by a bankb. A cheque which a customer forgot to pay to the businessc. A cheque without all the necessary details filled ind. A
A bank reconciliation:a. Checks the completeness of the information in the cash book and bank statementsb. Is a statement of the maximum amount a bank is prepared to lend a businessc. Tells the
A debit balance may appear on a payables ledger account because:a. A supplier has overpaidb. A purchase invoice has been duplicatedc. A business may have returned goods to a supplier after paying for
Relating to the closing inventory for a financial period, which of the following is true?a. The figure is shown only in the income statementb. The figure is shown only in the balance sheetc. The
A business started its year owing £4,000 for electricity. During the year it paid electricity bills totalling £24,000 but owed £5,000 by the end of the period. What will be the figure transferred
A business installs a machine costing £40,000. The machine is expected to last for 5 years and have a residual value of £4,000. What is the machine's net book value at the end of 2 years'
A car is bought for £16,000. It is to be depreciated on a diminishing balance basis using a rate of 40% p.a. What is the car's net book value at the end of 2 years' ownership?a. £9,600b. £5,760c.
For a pen factory, indirect costs could include:a. The cost of plastic to make the pensb. The cost of heating the factoryc. The wages paid to the skilled worl(ers making the pensd. The cost of
Which of the following headings appears when calculating the 'cost of manufacturing' in the income statement of a manufacturing business?a. Cost of salesb. Gross profitc. Prime cost of productiond.
A company -has opening inventory £6,900, closing inventory £7,800, purchases£33,650, carriage inwards £700 and purchases returns £400. What is its cost of sales?a. £31,650b. £33,850c.
An appropriation account is not part of the income statement for which type of business organisation?a. Sole proprietorshipb. Partnershipc. Limited companyd. Pic (public limited company)
A business sells an asset on 1 January for £12,000. The asset was bought exactly two years previously for £24,000 and depreciation was charged over five years on the straight line method, assuming
A company starts business on 1 January. In that month it buys 300 grecks at £40 each, then 200 at £50 each. On the last day of the month it sells 400 grecks. If it uses FIFO to value stock, what is
A company selling designer watches bought 400 for £60 each. Normal selling price is£100 per watch, but a change in fashion has resulted in all the watches being saleable at only £30 each, after a
What is a doubtful debt?a. A debt where there is some hope of getting paidb. A debt where there is no hope of getting paidc. A debt which is badd. A debt where the customer has queried an invoice
At the start of a year, a business has £3,000 on its provision for doubtful debts account.By the end of the year, doubtful debts have increased to £4,200. What entries would be shown in the
If a bad debt is unexpectedly paid some years after it was written off, what would be the effect in the financial summaries for that year?a. Increase profit and decrease receivables balancesb.
Financial accounting is:a. Mainly concerned with forecasting the futureb. Used only by the management of the businessc. Used only by people outside the businessd. Used by people both inside and
The key aspects of accounting are:a. Identifying, measuring and communicating economic informationb. Processing, recording and publishing financial informationc. SummariSing, analysing and
A steward is:a. The accountant of the organisationb. The owner of the organisationc. A trusted person who manages an organisation for othersd. A security guard who patrols the organisation's premises
Which one of the following is an underlying accounting assumption?a. Relevanceb. Going concernc. Prudenced. Reliability
Non-current assets are assets which are:a. Likely to last at least a year and are valuableb. Not going to be depreciatedc. Unlikely to last a yeard. The unsold goods of the business
Current assets are assets which:a. Keep their value over at least a yearb. Constantly change their valuec. Are depreciatedd. Sometimes change their value
Liabilities are usually divided between:a. Urgent and non-urgentb. Fixed and currentc. Current and non-currentd. Medium-term and long-term
A bank overdraft is usually classified as:a. A current assetb. A non-current liabilityc. A current liabilityd. Capital
The accounting equation can be shown as:a. Capital - Liabilities = Assetsb. Capital + Assets = Liabilitiesc. Assets + Liabilities = Capitald. Assets - Liabilities = Capital
Which of the following will not result in a change in the owner's capital?a. A non-current asset bought by the business for £10,000b. A profit made by the organisationc. A loss made by the
Using your knowledge of the accounting equation, fill in the white boxes in the following table (all figures in f): Assets Liabilities Capital 123456 25,630 14,256 23,658 15,498 619,557 352,491
a For each of the following transactions, show the effect (as pluses and minuses) on assets, liabilities and capital. The first has been completed for illustration. Assets Liabilities Capital
The annual report of a major public limited company included the following statement: Going concern The directors consider that the group and the company have adequate resources to remain in
A business sells goods for £1,000 paid into its bank account. The entries to be made are:a. Debit Sales Credit Bankb. Debit Inventory Credit Bankc. Debit Bank Credit Salesd. Debit Banl~ Credit
Goods bought for resale will be debited to the:a. Inventory accountb. Office expenses accountc. Sales accountd. Purchases account
When the owner takes out cash from the business for personal use it is referred to as:a. Drawingsb. Wagesc. Capitald. Salary
Payables are:a. Customers who pay cashb. Customers who owe money to the businessc. Suppliers who are owed money by the businessd. Suppliers who have been paid by the business
Which of the following is a personal ledger?a. General ledgerb. Payables ledgerc. Cash bookd. Balance sheet
The cash book contains which of the following accounts?a. Petty cash and Bankb. Drawings and Bankc. Bank and Cashd. Capital and Cash
A T account is:a. The account of all debtors whose names begin with the letter Tb. The account which shows the cost of office refreshmentsc. The account of a golferd. A simple representation of the
C/d and bid are abbreviations for:a. Carried down and Brought downb. Carried down and Balance downc. Correctly drawn and Badly drawnd. Cash deposit and Bank deposit
A trial balance is:a. A perfect check on the bookkeeping systemb. A check on the accuracy of the bookkeeping entriesc. A check on the arithmetical accuracy of the bookkeeping entriesd. A way of
A business operates an imprest system with a cash float of £150 topped up at the start of every week. During a week it spends £90 on petty cash items. How much will be transferred from the main
Balance the following accounts at 31 December, bringing down balances on 1 January. Sales account 12 Dec Cash repaid to customer 65 17 Dec Cash received 22 Dec Sales day book 84,000 125,600 Bank
For each of the following transactions, show the effect (as pluses and minuses) on assets, expenses, liabilities, capital and revenue. Assets Expenses Liabilities Capital Revenue 1 The business pays
For each of the following transactions, show the effect (as pluses and minuses) on assets, expenses, liabilities, capital and revenue. 1 The owner pays in 6,000 to start the business's bank account 2
From the following transactions of Rachel Roberts, write up a cash book showing cash and bank transactions and T accounts for all other transactions. Balance off the bank and cash accounts only, then

Showing 1800 - 1900 of 2364

First
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved