poa quiz

What is a trading business?

• Buys from customers and sells goods to suppliers

• Buys from suppliers and sells goods to customers

• Provides services to its customers

• Provides customers to its services

State a feature of a private limited company .

The business sold some goods to a customer and received payment by cheque . What source document is this ?

• Invoice

• Receipt

• Payment voucher

• Remittance advice

State the expanded accounting equation .

Myat is the owner of Maxi Bakery . Myat draws out $270 from the business bank account for his son's birthday party. He did not record this transaction. Explain, using an accounting theory, what are the appropriate actions that he should have taken.

Why are source documents important to a business ? Support your answer with a relevant accounting theory .

• According to the going concern theory , a business is assumed to have an indefinite economic life unless there is credible evidence that it may close down .

• According to the accounting entity theory , the activities of a business are separate from the actions of the owner . All transactions are recorded from the point of view of the business.

• According to the objectivity theory , only business transactions that can be measured in monetary terms are recorded .

• According to the objectivity theory , accounting information recorded must be supported by reliable and verifiable evidence so that financial statements will be free from biases.

Belinda started her business on 9 May 2018. She prepares financial statements for her business on 27 June 2018, 4 July 2019 and 17 December 2019. Explain using a relevant accounting theory if her actions were appropriate.

What are the roles of accountants?

• Provide accounting information system for stakeholders to make informed decisions regarding resources management and business performance

• set up accounting information system to provide timely, relevant and credible information understood by stakeholders are decision making and become stewards or buisness

Took a bank loan from OH Bank

• Loan from OH bank (L)+ Cash at bank (A)+

• Bank Loan (TR)+ Cash at bank (A)+

• Bank loan (L)+ Cash at bank (A)-

• Loan from OH bank (L)+ Cash in hand (A)+

Calculate the amount of cash at bank at 2 January 2016 .