Chapter 7 - Accounting for service businesses

Once source documents have been collected and sorted it is necessary to record the data they contain into ...

• Statement of Receipts and Payments

• Cash Flow Statement

• Journals

• Balance Sheet

What is an Accounting record that classifies and summaries all cash received from other entities during a particular reporting period?

• Cash Payments Journal

• Cash Receipts Journal

• Balance Sheet

• Income Statement

Which is not a heading in the Cash Receipts Journal?

• Date

• GST

• Drawings

• Bank

Any receipts that are infrequent should be recorded in which column of the Cash Receipts Journal?

• GST

• Sundries

• Fees

• Drawings

Which of the following receipts are subject to GST?

• Loans

• Capital contribution

• Interest revenue

• Fees for services rendered

Just as cash receipts are recorded in a Cash Receipts Journal, cash payments are classified and summarised in a ...

• Cash Receipts Journal

• Cash Payments Journal

• Statement of Receipts and Payments

• Cash Flow Statement

Which is not a heading in the Cash Payments Journal?

• Date

• GST

• Bank

• Receipt Number

Which of these cash payments are not subject to GST? There may be more than one.

• Interest expense

• Loan repayments

• Wages

• Drawings

We need to take information contained in the cash journals and present them it in an understandable manner. This is done by preparing ...

• Statement of Receipts and Payments

• Balance Sheet

• Cash Receipts Journal

• Cash Payments Journal

Which is not a heading in the Statement of Receipts and Payments?

• Cash Receipts

• Less Cash Payments

• Cash Surplus (Deficit)

• Cash Flows from Operating Activities