Financial Statements Quiz

Who is responsible for the preparation and analysis of financial statements?

• Bookkeeper

• Accountant

• Auditor

• Manager

What concept states that revenues and expenditures should be matched to the time period in which they were earned or incurred?

• Accruals

• Capital

• Cash flow

• Depreciation

What is an amount owed for an expense that has been used in this financial year, but which has not yet been paid?

• Additional incomes

• Accrued expenses

• Arithmetical error

• Asset

What term describes revenues that come from places other than the selling of the core products or services?

• Accrued expenses

• Additional incomes

• Capital

• Cash receipts

What is an error which causes debits and credits to not equal in the trial balance?

• Accrued expenses

• Arithmetical error

• Bank reconciliation statement

• Cash receipts

What is a resource owned by a business?

• Asset

• Capital

• Cash

• Carriage inwards

What statement explains the difference between the balance of the bank account recorded in the cash book and the balance shown on the bank statement?

• Bank statement

• Bank reconciliation statement

• Cash receipts

• Books of prime entry

What is the source document that evidences all bank transactions?

• Bank reconciliation statement

• Cash receipts

• Bank statement

• Books of prime entry

Who records the financial transactions within the books of prime entry and the ledgers?

• Accountant

• Manager

• Bookkeeper

• Auditor

What are the books in which information from source documents are summarised and organised, and are the first place in which transactions are recorded?

• Bank statement

• Books of prime entry

• Cash receipts

• Capital