TOPIC 5 : ADJUSTMENT AT THE END OF ACCOUNTING PERIOD

TOPIC 5 : ADJUSTMENT AT THE END OF ACCOUNTING PERIOD

LO : BASIS OF ACCOUNTING

Read carefully these slide before proceed to answers the question.

Fill in the Blanks

State 2 basis of accounting : ____________ and _____________

Multiple Choice

Determine which basis is comply with GAAP?

• Cash basis

• Accrual basis

Fill in the Blanks

According to cash basis, revenue are recorded and recognized when

?

Fill in the Blanks

According to accrual basis, expenses are recorded and recognized when

study the differences between revenues and expenses,

answers the next questions.

Multiple Select

Select the correct statement regarding revenues :

• sales of goods or services

• relevant with revenue recognition concept

• will increase owners' equity

• will decrease owners' equity

• cost of good sold

Multiple Select

Select the correct statement regarding expenses.....

• sales of goods or services

• relevant with expense recognition concept

• cost of goods sold

• will increase owners' equity

• will decrease owners' equity

read all the information given in the slide before proceed to next slide

Fill in the Blanks

Revenue can be divided into ________ and ____________

Fill in the Blanks

Expenses can be divided into _________ and ___________.

Fill in the Blanks

State two types of expenditure : ________ and ___________

Multiple Select

Revenue expenditure will be :

• reported in the Statement of Financial Position

• reported in the Statement of Comprehensive Income

• reported in the Statement of Profit and Loss

• increase the business profit

• decrease the business profit

Read the information in this slide carefully, then answer the questions in the next slide

Fill in the Blanks

State three (3) aspect in determining the revenue expenditure or capital expenditure : ___________, _____________ and______________

Multiple Select

Select the suitable explanation for the capital expenditure :

• amount involved is large

• amount involved is small

• frequent expenses

• expenses that extend the useful life or asset efficiency

Multiple Select

Select the suitable explanation for the revenue expenditure :

• amount involved is large

• amount involved is small

• frequent expenses

• expenses that extend the useful life or asset efficiency