Accounting Question

Deferral type adjustments occur when cash for expenses is paid in advance or cash from incomes is pIe-oollected. How many of the following will require a deferral type adjustment? 0 Rent paid for In advance I Buildings to be depreciated - Rent collected in advance from tenants - Stationery used by the ofce staff during the period select one: a. 1 b. 2 A C. 3 f\" d.l| ______________ are obligations of the rm that are expected, in the normal course of business, to be settled in the next twelve months. Note - there are Two words in this answer The basis of accounting is not a generally accepted method of determining prot for businesses that have signicant credit transactions. PS9 which of the following is not an advantage of preparing an adjusted trial balance? Select one: '7' a. a. It veries that the debits equal the credits in the ledger after the preparation of the adjusting entries -'"'- b. It reduces the possibility of errors being carried forward from the ledger into the accounting reports 3\" c. It is a shortcut which means that the adjusting entries do not have to be entered into the ledger F\" d. It assists in the preparation of the financial statements Under the basis of accounting. income is recognised when earned and expenses when Incurred. 5. Amaud Company calculates that this year's estimated bad debts expense will be 51500. When Amaud makes the adjusting entry the effect will be: WWW Select one: a. No affect; Increase; Decrease b. No affect; Decrease; No affect c. Increase; Increase; No affect d. Increase: No effect; Decrease Allowance for Doubtful Debts is a asset account. The statement that best descrlbes the nature of accounting depreciation Is: Select one: a. A charge representing the change in the asset's market value r"\\_ b. A charge representing the decline in the physical efficiency of the asset ./_\\. c. The amount that can be claimed as a tax deduction /. 3 '- d. An allocation of the cost of the asset over its estimated useful life An estimate of the value of an asset that can be recovered at the end of its useful life is called its value. HRH '5 balance sheet of 30 June 2011 shows a motor vehicle at a cost price of 572000 less accumulated depreciation of $36 000. Depreciation is calculated on a straight-line basis. If the vehicle had a useful life of 6 years at the time of purchase and a residual value of $6000 what is its carrying amount on 1 July 2013? Select one: -'\""- 8.521: 000 -'\"'- b. $25 000 15' C. $14 000 10- . _ " d. 526 000