AVBK Session 1 recap

Bill is preparing his year end accounts and needs to include all income and expense what is the concept called?

• Going concern

• Accruals

• Prudence

• Consistency

Which concept assumes the business will continue to trade?

• Consistency

• Prudence

• Accruals

• Going concern

Ahmed sells goods for a net price of £280 to Viktoria and offers her a 2% settlement discount. What is the invoice total?

• £274.40

• £329.28

• £336.00

Assets are £275,000 and capital is £187,000 how much are the liabilities?

• £462,000

• £88,000

A business makes a sales on 30th December but does not invoice for it until 2nd January. Should the sale be included in the accounts for the year ended 31st December?

• Yes

• No

Which of these is an asset?

• Trade receivables

• Trade payables

• Discount received

• Discount allowed

Which of these is the odd one out?

• Electricity

• Wages

• Discount allowed

• Shop fittings