Accounting Recap of content

The purpose of accounting is to keep accounting records for (a)   use.

• internal
• external

Management accounting uses quantitative and qualitative information.

• True

• False

Reorder the Financial Accounting System

• Subsidiary books/day books

• Trial balance

• Final Accounts

• Source documents

• Double entry book keeping

What are the two final accounts prepared in the financial accounting system?

Answer explanation

Trading profit and loss account

Statement of financial position

Match the double entry

• an expense and is a debit entry

• Purchases are

• carried forward on the credit side

• Decrease in income is

• an expense

• An accrual is

• entered on the debit side

• Discount allowed is

• entered on the credit side

• Increase in liabilities are

The sales for the year ended is £3890, stock as at 1 Jan 2024 is £360, purchases is £2300, stock at 31 Dec is £470. What is the gross profit?

Mathematical Equivalence

ON

The bank overdraft carried forward is entered on the ------ side of the T account.

A prepayment appears as a current​ (a)   in the SOFP.

• asset
• liability

Organize these options into the right categories

Groups:

(a) Income statement

,

(b) SOFP

• Drawings

• Depreciation

• Loan

• Fixture and fittings

• Discount Allowed

• Trade receivables

• Discount Received

• Purchases

The business paid £5000 rent for a year starting from 1st April. The business year end is on 31st Dec. What is the rent prepayment?

Mathematical Equivalence

ON