FS adjustment check-out quiz 1

What are the sections of Statement of financial performance? *Check all option(s) that applies.

• Trading portion

• Other income

• Current assets

• Less: Other expenses

• Owner's equity

What are the sections of Statement of financial position? *Check all option(s) that applies.

• Trading portion

• Liability

• Asset

• Less: Other expenses

• Owner's equity

Name the items of the Trading portion of Statement of financial performance.

• Sales revenue

• Commission income

• Less: Cost of sales

• Rental expense

• Less: Sales returns

Each adjustment for financial statement question affects at least 2 accounts.

• True

• False

Business paid $100 for utilities expense with cheque. This was not recorded. Select the required adjustment (s).

• Utilities expense +100

• Utilities expense -100

• Cash at bank +100

• Cash at bank -100

Business recorded $100 of utilities expense as rent expense in error. Select the required adjustment (s).

• Utilities expense +100

• Rent expense -100

• Rent expense +100

• Utilities expense -100

Ali's business has the following balances.

Rent expense $10,000

Additional information:

Business has an annual rent expense of $12,000.

How is rent expense presented on statement of financial performance?

• Under Less: Other expenses | Rent expense $12,000

• Under Add other income | Rent expense $12,000

• Under Less: Other expenses | Rent expense $10,000

• Under Add other income | Rent expense $10,000

Ali's business has the following balances.

Rent expense $10,000

Additional information:

Business has an annual rent expense of $12,000.

How is rent expense payable presented at statement of financial position? *Hint: amount you pay too little by?

• Under Current assets | Rent expense payable $12,000

• Under Current assets | Rent expense payable $2,000

• Under Current liabilities | Rent expense payable $12,000

• Under Current liabilities | Rent expense payable $2,000