Unit 4 Topic 2 What do you know?

Which of the following is NOT an example of a source document?

• bank statement

• business card

• tax invoice

• adjustment note

What is the final step in the accounting process?

• reversing entries

• balance day adjustments

• end of period reports

• closing entries

Identify the accounts in the following transaction:

Sold goods on credit $770 (GST inclusive) with a cost price of $500.

• Sales, GST Collected, Accounts Receivable

• Sales, Accounts Receivable, GST Collected, Inventories, COGS

• Sales, Inventories, Accounts Receivable, GST Credits Received, COGS

• Accounts Payable, GST Collected, Sales, Inventories, COGS

List 3 types of balance day adjustments

(a)  

Identify the DEBIT accounts in the following transaction:

Paid electricity $66

• Electricity, GST Collected

• Electricity

• Electricity, GST Credits Received

• Electricity, GST Credits Received, Cash

Which of the following is not a form of a ledger?

• general ledger

• accounts receivable ledger

• stock ledger card

• control ledger

Which is the most common inventory costing method?

• FIFO

• LIFO

• Weighted Average

• Standard Cost

What is the correct entry for recording an inventory adjustment (surplus)?

• Inventory Adjustment DR, Inventories CR

• Inventories DR, Inventory Adjustment CR

• Inventories Expense DR, COGS

Which of the following is not included when calculating straight line depreciation?

• original cost

• residual value

• other expenditure

• capital expenditure

• estimated life

If a business has a CR balance as per bank statement, which of the following is accurate for preparing the bank reconciliation statement?

• add outstanding deposits, less outstanding payments

• less outstanding deposits, less outstanding payments

• less outstanding deposits, add outstanding payments

• add revenues, less expenses