TOPIC 6 AND TOPIC 7 FINANCIAL STATEMENT WITH YEAR END ADJUSTMENT

What is the purpose of preparing financial statements?

• As accounting analysis used to identify the trends and relationship between items.

• To evaluate the performace of an organization.

• To record information regarding the business activities from the source documents.

• To check daily cash and banking transactions.

Which of the followings is NOT the main components of financial statements.

• Trading Account

• Profit and Loss Account

• Balance Sheet

• Statement of Accounting Informations

Goods being returned to the supplier by the business. This situation can be described as..........

• Return outwards

• Return inwards

• Carriage outwards

• Carriage inwards

Which of the followings is NOT purchase cost?

• Carriage inwards

• Insurance on purchase

• Transportation out

• Packaging

Debenture is under categories of ..............

• Current Liabilities

• Non-Current Liabilities

• Current Assets

• Owner's Equity

A statement of financial position is prepared to determine the business' financial position at the end of an accounting period. Which of the following is NOT included in the statement of financial position.

• Purchase

• Current Liabilites

• Intangible Assets

• Tangible Assets

Which of the followings is TRUE explaning about the cash basis.

• Revenue should be recorded in the accounting period when cash for it received.

• Revenue should be recorded in the accounting period in which it is earned.

• Revenue should not recorded in the cash account.

• Revenue should be recorded in the accounting period when the cash for it is paid.

Unearned Income is the income that has been received but not yet earned and considered as a current liability to a business. It is also called prepared revenue.

• TRUE

• FALSE

• NOT SURE

Which of the followings is NOT the factors that contribute to the depreciation?

• Inadequacy

• Obsolescence

• Natural factor

• Gain Profit

A bad debts recovery is an accounting terminology to describe one of a revenue.

• FALSE

• TRUE

• NOT SURE