Retrieval Quiz Dec 2022

If a business has an accrued expense at year end where will it appear in the sofp?

• Current asset

• Current liability

• Non current asset

• Non current liability

If a business has an prepaid expense at year end where will it appear in the sofp?

• Current asset

• Current liability

• Non current asset

• Non current liability

Which of the following are examples of non current assets (tick all that apply)

• Fixtures and Fittings

• Vehicles

• Machinery

• Inventory

Which of the following are current assets (tick all that apply)

• Bank overdraft

• Closing inventory

• Trade receivables

• Bank balance

This is an expense that has been used by the business but not yet paid for

• Accrued expense

• Prepaid expense

• Irrecoverable debts

• Provision for doubtful debts

This is an expense that has been paid for but not used by the business till the following year

• Accrued expense

• Prepaid expense

• Irrecoverable debts

• Provision for doubtful debts

This is when a business writes off a trade receivable balance that won't be paid

• Accrued expense

• Prepaid expense

• Irrecoverable debts

• Provision for doubtful debts

This is when a business deducts a percentage from trade receivables each year who they think may not pay

• Accrued expense

• Prepaid expense

• Irrecoverable debts

• Provision for doubtful debts

Opening inventory + net purchases- closing inventory =

Gross profit + ___________ - other expenses = profit/loss for the year ended