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.

Multiple Choice

Determine which basis is comply with GAAP?

• Cash basis

• Accrual basis

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

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

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