Accounting Chapter 11 - Past Year MCQ

During her first financial year, a trader paid $1800 for insurance and $3200 for rent. At the end of the financial year, she transferred insurance of $1500 and rent of $3600 to the income statement. What do the balances remaining on the accounts at the end of the financial year represent?

• Insurance - accrued | Rent - accrued
• Insurance - accrued | Rent - prepaid
• Insurance - prepaid | Rent - accrued
• Insurance - prepaid | Rent - prepaid

At the end of the financial year Mui had prepaid rent of $1500. How should she record this?

• credit $1500 in the rent account and carry down as a credit balance
• credit $1500 in the rent account and carry down as a debit balance
• debit $1500 in the rent account and carry down as a credit balance
• debit $1500 in the rent account and carry down as a debit balance

Jameel’s financial year ends on 31 December. On 1 January 2021 he brought down a debit balance on his stationery account. What does this balance represent?

• amount owing for stationery on 1 January 2021
• amount paid for stationery during 2020
• cost of stationery used during 2020
• inventory of stationery on 1 January 2021

The following ledger account appeared in the books of a trader. Which statement is correct?

• Rates are accrued at both the start and the end of the year.
• Rates are accrued at the start of the year and prepaid at the end of the year.
• Rates are prepaid at both the start and the end of the year.
• Rates are prepaid at the start of the year and accrued at the end of the year.

The financial year of Peter ends on 30 September. On 1 August 2020 Peter received rent $1000. This covered the period from 1 July to 30 November 2020. Which entry will be made in Peter’s statement of financial position on 30 September 2020?

• current asset $400
• current asset $500
• current liability $400
• current liability $500

Alice’s financial year ends on 31 December. The balances on her books on 1 January 2020 included the following. commission receivable 250 debit rent receivable 500 credit What do these balances represent?

• Commission Receivable - outstanding | Rent Receivable - outstanding
• Commission Receivable - outstanding | Rent Receivable - prepaid
• Commission Receivable - prepaid | Rent Receivable - outstanding
• Commission Receivable - prepaid | Rent Receivable - prepaid

Annual rental income due from Kumar, a tenant, is $3600. At the start of the year Kumar had prepaid rent of $900. At the end of the year he owed two months’ rent. How much rent was received from Kumar during the year?

• $2100
• $3300
• $3900
• $5100

A business provided the following information about two expenses. Which amounts will be charged to the income statement for the year ended 31 December 2019?

• electricity - 900 | insurance - 800
• electricity - 1380 | insurance - 1240
• electricity - 1620 | insurance - 1160
• electricity - 2100 | insurance - 1600

Anjum rents part of her premises to Ajay for $6120 per annum. At the beginning of the year Ajay had paid two months rent in advance. At the end of the year Ajay had paid three months rent in advance. How much rent was received from Ajay during the year?

• $3570
• $5610
• $6630
• $8670

Amounts owed by a trader for electricity are given below. 1 January 2 000 31 December 2 500 The charge for electricity shown in the income statement for the year ended 31 December was $15 500. What was the amount paid for electricity during the year?

• $15 000
• $15 500
• $16 000
• $20 000