. ………..cheques and amounts paid in, not yet credited are used to prepare the bank reconciliation statement.
blank
dishonored
drawn
unpresented
A ………… cheque is one which the bank refuses to pay for various reasons.
blank
dishonored
drawn
unpresented
A bad debt recovered account is used to record the recovery of bad debts ………the financial year in which they were written off.
after
before
during
on
A bank account with overdraft has a debit balance.
False
True
A bank reconciliation statement is prepared to ………. between the cash book and bank statement balances.
explain
identify
reconcile
update
A debit balance on the insurance account means that insurance premiums have been paid in advance.
False
True
A journal entry always includes a debit and a credit entry.
False
True
A journal entry states which account is to be debited and which account is to be credited, along with a ……….. to explain the reason for the entry.
check_box narrative
cause
sentence
word
A petty cash book voucher has to be completed and ……… before payment is made.
check_box authorized
made
obtained
written
A prepaid expense is added to the expense item from the trial balance.
False
True
A prepaid expense is shown as a current asset in the balance sheet.
False
True
A prepaid expense requires no year-end adjustment.
False
True
A prepaid income is an income received in…………of the accounting period that it relates to.
check_box advance
ahead
front
terms
A provision for doubtful debt is set at a ………….of debtors.
number
percentage
rank
rate
A stale cheque might be a dishonored one.
False
True
A………..of a debt may be written off as a bad debt if the debtor is not able to pay all of what is owed.
little
lot
part
whole
Accrual of income means that income due …………. the financial year has not been received by the end of the year.
for
of
to
with
Alternative names for the Journal are the ……….. Journal or Journal Proper.
check_box general
generalize
generous
popular
Amounts due from debtors, which are individually written off should be debited to bad debts account.
False
True
Amounts paid in but not yet included in the bank statement are called unpresented cheques.
False
True
An accrual of expense remains ………at the end of that period.
due
owed
paid
unpaid
An accrued expense is shown amongst the liabilities in the balance sheet.
False
True
An accrued expense is shown as an amount due within 1 year in the balance sheet.
False
True
An accrued expense represents an expense paid in advance.
False
True
An error in addition is one not affecting the trial balance agreement.
check_box False
True
An error overstating an expense item would also overstate the net profit.
check_box False
True
An error understating an income item would also understate capital.
check_box True
False
An error understating the purchases amount would overstate gross profit.
check_box True
False
An expense accrual appears in the balance sheet as a………..
current asset
current liability
fixed asset
long-term liability
An expense prepayment appears in the balance sheet as a……………..
current asset
current liability
fixed asset
long-term liability
An income accrual appears in the balance sheet as a…………..
current asset
current liability
fixed asset
long-term liability
An income prepayment appears in the balance sheet as a……………
current asset
current liability
fixed asset
long-term liability
Any debt written off must be charged against the profit by means of a ……….entry in the profit and loss account.
credit
debit
right
wrong
Any debts written off are a/an …………of the business.
benefit
expense
gain
loss
Any decrease in the provision for doubtful debt will be seen as an expense to the firm.
False
True
Any decrease in the provision for doubtful debts is a ……….. to the firm.
benefit
growth
loss
reduction
Any increase in a depreciation provision is credited to the Profit and Loss account.
False
True
Any increase in the provision for doubtful debt will be debited to the P/L account.
False
True
Any………..in depreciation provision is charged against profit.
going up
growing
increase
increasing
Bad debts are debts that the business is unable to………..
buy
collect
give
pay
Bad debts written off are not shown in the balance sheet.
False
True
Bank charges are the income of the business.
False
True
Capital expenditure decreases the figure of assets in the balance sheet.
False
True
Capital expenditure is aimed at providing long-term benefits.
False
True
Capital expenditure is the money spent on the ………… of fixed assets or on improvements to fixed assets.
disposal
purchase
sale
scrap
Closing stock appears ………in the final accounts.
check_box twice
four times
once
three times
Closing stock appears both in the trading account and in the balance sheet.
check_box True
False
Closing stock is included in the trial balance.
check_box False
True
Costs of business belong to capital expenditure.
False
True
Debts may be written off at……………times throughout the year.
different
few
same
several
Depreciation is the estimate of the …………in value of fixed assets over a period of time.
check_box fall
falling
growth
increase
Depreciation provision account has a credit balance.
False
True
Differences in the cash book and bank statement balances could be due to time………..
causes
changes
differences
shifts
Drawings can be in the form of business facilities.
check_box True
False
Drawings can only be in the form of bank or cash.
check_box False
True
Drawings cannot be in the form of goods that the business deal.
check_box False
True
Drawings is …………from capital in the balance sheet.
check_box deducted
added
different
less
Drawings is added to capital in the balance sheet.
check_box False
True
Drawings might also take the …….of goods for private use
check_box form
effect
format
layout
Drawings might also take the form of using business………for private purposes.
check_box facilities
expenditure
expenses
facilitate
During the period, the petty cashier can make payments up to the value of the ………….
account
budget
float
fund
Errors are …………… using journal entries.
check_box corrected
caused
created
made
Errors in figures in the trading and profit and loss account will affect the ………………. of profits.
check_box calculation
cause
leading
resulting
Errors in figures in the trading and profit and loss account will affect the calculation of profits.
check_box True
False
Errors of commission occur when a transaction is entered in the wrong class of account.
False
True
Errors of duplication occur when a transaction is entered twice in the book.
False
True
Errors of original entry happen when the entries have been made with the amount being entered wrongly in one account.
check_box False
True
Expenditure incorrectly treated as capital expenditure will overstate the …………… on the balance sheet.
assets
capital
debtors
liabilities
Expenditure incorrectly treated as capital expenditure will overstate the assets on the balance sheet.
False
True
Expenditure incorrectly treated as revenue expenditure will overstate expenses and ………….. profits.
increase
raise
reduce
rise
Expenditure incorrectly treated as revenue expenditure will understate expenses and increase profits.
False
True
Expenses and incomes need to be…………..to the correct accounting period.
listen
listening
match
matched
If drawings is in the form of cash, ……..account is credited.
check_box cash
bank
capital
drawings
If drawings is in the form of goods, it is necessary to show a……….from purchases in the trading caccount.
check_box deduction
decrease
deduct
reduce
If trading and profit and loss accounts are presented in a two sided form, it is called the …….form.
check_box horizontal
long
short
vertical
If you take no account year-by-year of the fall in value of fixed assets, the annual profit figures are………
overstated
undercast
underestimated
understated
If you take no account year-by-year of the fall in value of fixed assets, the value of assets in the balance sheet is ………
overstated
undercast
underestimated
understated
In allowing for depreciation of fixed assets, you estimate the amount to be received on………..
disposal
disposing
sale
selling
In straight line method to calculate depreciation, the eventual disposal…………..is estimated.
cost
estimate
price
value
In the account of provision for depreciation, it is only necessary to ……….down the balance once two entries have been made.
bring
carry
get
put
In the balance sheet, each fixed asset is shown at………..less total depreciation to date.
cost
once
price
time
In the balance sheet, the net profit is added to capital.
False
True
In the balance sheet, the net profit is added to………….
check_box capital
debtors
drawings
stock
In the petty cash book, any payment item has to be entered twice, once in the total column and once in the appropriate analysis column.
False
True
In the petty cash book, the total of the analysis column totals and the total of payments are not necessarily equal.
False
True
Omission is an error affecting the trial balance agreement.
check_box False
True
Once the provision for doubtful debts has been created, it remains in the books until………..
amended
changed
left
moved
One of the reasons for a dishonored cheque is that the drawer has not……..……funds in his bank account.
many
much
several
sufficient
One of the reasons for a dishonored cheque is that there may be something………in the way the cheque has been written.
correct
different
incorrect
strange
Opening stock appears ………in the final accounts.
check_box once
four times
three times
twice
Petty cash book is set up to deal with…………payments.
check_box enormous
big
large
small
Petty cash operates on the imprest………….
check_box system
measure
method
way
Provision for depreciation has a…………..balance.
correct
credit
debit
false
Reimbursement of the petty cash float may be done on the last day of the period or on the first day of the ………. period.
check_box next
accounting
annual
financial
Revenue expenditure is chargeable to the trading and profit and loss account while capital expenditure results in ………… figures for the balance sheet.
decreased
fallen
increased
reduced
Revenue expenditure is chargeable to the trading and profit and loss account.
False
True
Revenue expenditure is the day-to-day …………. costs of a business.
going
jogging
running
walking
Stock included in the balance sheet is the opening stock.
check_box False
True
Straight line method is also termed the fixed …………..method.
asset
division
installment
period
The ………… column is used to record the receipt of money into petty cash.
check_box receipts
analysis
date
details
The accrual amount is ……………to the figure shown in the trial balance when including the item in the profit and loss account.
check_box added
less
paid
plus
The amount paid out is then ……….. to the petty cashier at the end of the period.
check_box reimbursed
drawn
given
lent
The asset account balance is not reduced by the …………..provision for depreciation.
annual
daily
hourly
monthly
The asset account balance is reduced when the asset is sold or……….
bought
given
kept
scrapped
The asset account has a………….balance.
correct
credit
debit
false
The asset account is reduced by the annual provision for depreciation.
False
True
The bad debts account serves as a ………….point for debts written off over the year.
arrival
collection
coming
final
The balance sheet will show the total of debtor after the provision for doubtful debts being deducted.
False
True
The balance sheet will show the total of debtor before writing off bad debts.
check_box False
True
The balance used in preparing the bank reconciliation statement is that of the unupdated cash book.
False
True
The cash book is …………. with items revealed by the bank statement, e.g. bank charges, credit transfer, direct debit, etc.
drawn up
prepared
set up
updated
The first step in updating the cash book is to tick the items both appear in the cash book and bank statement.
False
True
The first step in updating the cash book is to tick the items that………….in both cash book and bank statement.
appear
come
display
show
The float cannot be amended, it is set as a fixed amount.
check_box False
True
The items picked up from the bank statement are entered into the cash book as at the last date of the period.
False
True
The items picked up from the bank statement should not appear in the …………statement.
prepared
reconciliation
sale
updated
The journal is a kind of book of prime entry.
check_box True
False
The Journal is not a part of the double entry system; it is just a form of ………… supporting the double entry.
check_box diary
book
note
notebook
The journal is used to record transactions that are not entered in the other books of ………… entry.
check_box original
credit
debit
double
The main difference between the two types of expenditure is the ………… of time the expenditure is of benefit to the business.
depth
height
length
weight
The main………….of depreciation are physical deterioration, economic factors and time factors.
check_box causes
cause
ideas
items
The petty cash book has …………. columns for each category of expenditure.
check_box analysis
detailed
different
many
The petty cash book is a book of ………. entry as well as a ledger account.
check_box original
credit
debit
double
The prepaid amount is …………..from the figure shown in the trial balance when including the item in the profit and loss account.
added
less
plus
subtracted
The provision for depreciation …………up the amount of depreciation year by year.
build
grow
keep
make
The provision for doubtful debt has a credit balance.
False
True
The provision for doubtful debt is never adjusted.
False
True
The provisional profits may change as a result of error …………….
commission
compensation
correction
duplication
The purchase and sale of fixed assets is always made diary notes on in the journal.
check_box False
True
The reconciliation process has two………….
measures
methods
stages
ways
The reconciliation statement will start with the balance as…………..the bank statement.
for
of
per
with
The reduced balance is the cost of the asset less depreciation to …………
date
day
hour
minute
The reducing balance method is also termed the………….balance method.
decreasing
diminishing
falling
going down
The reimbursement can only take place on the last day of the period (e.g. the month).
False
True
The third step in updating the cash book is that the cash book is ……………to obtain the up-to-date balance.
calculated
drawn up
prepared
re-balanced
The trading and profit and loss account only has one form to be display.
check_box False
True
The use of the Journal reduces the chances of ……….. a transaction and makes fraud by book-keepers more difficult.
check_box omitting
leaving
recording
remembering
The use of the petty cash book saves the cash book and ledger accounts from being ………… with a lot of minor details.
check_box overcrowded
heavy
many
much
The value closing stock has got an ……..on the profit for the period.
check_box effect
affect
affection
effective
The value closing stock has got an effect on the profit for the period.
check_box True
False
The voucher numbers are entered in …………
case
sequence
time
turn
The word ‘estimate’ in allowing for depreciation of fixed assets means that you are estimating the working……….of the asset.
hours
life
period
time
There are two ways in preparing the bank reconciliation statement.
False
True
There is likely to be either a ……….or a profit arising out of the sale of a fixed asset.
decrease
fall
loss
reduce
To correct the error of reversal of entries, we need to double the original amount in the entries made.
False
True
Totals from the analysis columns are posted to the ………. accounts at the end of the month.
check_box ledger
appropriate
relevant
suitable
When a fixed asset is sold, there are ………… elements to take account of.
2
3
4
5
Where business ………… (e.g. telephone) are used for the owner’s personal use, this is also regarded as drawings, and adjustments must be made at the end of the year to reflect this.
equipments
expenses
facilities
services
With the straight line method of depreciation, the estimated disposal value should not be allowed for in calculating the annual depreciation provision.
False
True
Year-end ……………… are necessary to give a true and fair picture, as far as possible, of the performance of the business over the period.
check_box adjustments
accounts
calculations
performance

Nếu bạn thấy tài liệu này có ích và muốn tặng chúng tớ 1 ly café
Hãy mở Momo hoặc ViettelPay và quét QRCode. Đây là sự động viên khích lệ rất lớn với chúng tớ và là nguồn lực không nhỏ để duy trì website

Momo
ViettelPay

Không tìm thấy đáp án? Cần hỗ trợ hoàn thành môn học EHOU? Cần tư vấn về học trực tuyến hay bạn chỉ muốn góp ý?
ZALO|TELE 08 3533 8593