FINAL CH. 5 ICAEW CFAB ACCOUNTING (AG)

What are the steps to calculate Profit for the year?

• Gross profit + Income - Expenses

• Gross profit + Income + Expenses

• Gross profit + Income - Capital

• Gross profit - Income - Expenses

An asset account shows a

• Debit balance

• Credit balance

• Credit or debit balance

Depreciation on motor vehicles should be classified under administration expenses

• False

• True

An insurance payment, RM 600, was correctly debited to the bank account but was posted to the salaries account by mistake.

• Error of commission

• Error of principle

Cash at bank is an example of a

• Current asset

• Equity

• Non-current asset

What is the equation to calculate Gross profit?

• (Sales revenue + Cost of sales) - Sales returns

• Sales revenue + Income - Expenses

• (Sales revenue - Sales returns) - Cost of sales

• (Sales revenue + Sales returns) - Cost of sales

How does net loss affect owner's equity?

• indirectly

• decreases

• no change

• increases

Trial balance can be prepared

• At the end of year

• In the beginning of year

• At any time of year

Drawings of goods by Nick for personal use, RM 200 had not been recorded in the books.

• Error Of Commission

• Error Of Omission

What is the accounting equation used in the Statement of Financial Position?

• Total assets = Total Loan + Equity

• Total assets = Total Income + Equity

• Total assets = Total Liabilities - Equity

• Total assets = Total liabilities + Equity