S3 Accounting Assessment Income Statement and Adjustments

Advertising is £300 but the notes tell you there is £50 prepaid. What figure goes into the Income Statement Expenses section?

• £300

• £250

• £350

• £50

Wages are £2,100 but the notes tell you there is £400 still due. What figure goes into the Income Statement Expenses section?

• £2,100

• £1,700

• £2,500

• £400

Heat and Light is £3,550 but the notes tell you there is £300 outstanding. What figure goes into the Income Statement Expenses section?

• £3,550

• £3,250

• £3,850

• £300

Vehicles are £40,000 at cost and are to be depreciated at 20% each year. What figure goes into the Income Statement Expenses section?

• £40,000

• £32,000

• £8,000

• £4,000

In an Income Statement you use both Opening and Closing Inventory figures to help determine the Cost of Sales

• True

• False

• It depends

• Don't know

Machinery is £20,000 at cost and is to be depreciated at 10% each year. What figure goes into the Income Statement Expenses section as Machinery Depreciation?

• £20,000

• £18,000

• £2,000

• £1,000

Trade Payables is £10,000 and Trade Receivables is £20,000. If you are to create a provision for bad debts of 10%, which figures will appear in the Expenses section of the Income Statement?

• £1,000

• £3,000

• £2,000

• £1,500

Where does the second entry appear in the Income Statement compared to the first entry?

1. Closing Inventory

2. Opening Inventory

• Before

• After

• Does Not Appear

Where does the second entry appear in the Income Statement compared to the first entry?

1. Discount Received

2. Rent Received

• Before

• After

• Same Section

• Does Not Appear

What is the word we use in accounting for delivery costs?