Year 10 Commerce - Accounting

How would a $100 000 loan, due in 2030, with annual instalments of $15 000 be categorised in the Balance Sheet?

• $100 000 as a non-current liability

• $100 000 as a non-current liability

• $15 000 as a current liability and $85 000 as a non-current liability

• $85 000 as a current liability and $15 000 as a non-current liability

A resource controlled / owned by a business that will generate economic benefit within 12 months is categorised as what?

• Owner's equity

• Revenue

• Non-current asset

• Current asset

Calculate the Owner's Equity for this equation: Assets = $70 000, Liabilities = $25 000.

• $95 000

• $45 000

• $50 000

• $0

Which two accounts are impacted by the following transaction (and what is the impact)? A business purchases $15 000 worth of inventory on credit.

• Inventory (CA) increases by $15 000, Accounts Payable (CL) increases by $15 000

• Inventory (CA) decreases by $15 000, Accounts Payable (CL) decreases by $15 000

• Inventory (CA) increases by $15 000, Bank (CA) decreases by $15 000

• Inventory (CA) increases by $15 000, Accounts Receivable (CA) decreases by $15 000

Money earned by a business from completing a sale is which of the following accounting elements?

• Asset

• Revenue

• Owner's equity

• Liability

Where does "Cartage in" appear in the Income Statement?

• Under "Other expenses"

• Under "Cost of goods sold"

• Under "Gross Profit"

• What? It goes in the Balance Sheet doesn't it?

Which "cartage" involves sending/posting inventory to the customer (after the sale has taken place)?

• Cartage OUT

• Cartage IN

• Cartage SIDEWAYS

How would rent be recorded in financial reports?

• "Other expenses" in an Income Statement

• Current liability in Balance Sheet

• Asset in Balance Sheet

• Under "Cost of goods sold" in the Income Statement

What items can appear under Cost of Goods Sold in the Income Statement?

• Sales returns, cost of sales, GST

• Cost of sales, cartage out, customs duty/tax

• Cost of sales, cartage in, cartage out

• Cost of sales, cartage in, customs duty/tax

What should be written at the top of a Balance Sheet?

• Business name, "Balance sheet for period ending.....DATE"

• Business owner name, "Balance sheet as at.....DATE"

• Business name,"Balance Sheet as at....DATE"

• Business name only