F3-Chapter 1

An income statement summarizes the income and expenditure of the company over a period of time.

• True

• False

If income exceeds expenditure, the business gets a..............................

The concept is to prevent the business from being over-optimistic about future profits

• Fair presentation

• Matching

• Prudence

• Consistency

An optional reduction in the amount of money payable by a customer when the goods would normally be sold.

• Cash discount

• Trade discount

A list of goods that a business has received from supplier. It usually prepared by the business's own warehouse or goods receiving area.

• Good dispatched note

• Purchases order

• Sales order

• Goods received note

Double entry of transaction: Put in cash of $2000 as capital

DR cash at bank

CR..............................

A business paid $1,100 in cash to totally clear its debt

• DR trade payables

  CR Cash at bank

• DR Cash at bank

  CR trade payables

• DR trade receivable

  CR Cash at bank

• DR Cash at bank

  CR trade receivable

Which one of the following can the accounting equation can be rewritten as?

• Assets + profit - drawings - liabilities = introduced capital

• Assets + profit - drawings = introduced capital + profit

• Assets - liabilities - introduced capital + drawings = profits

• Assets - profit - drawings = introduced capital - liabilities

Which of the following is not a book of prime entry?

• Journal

• Sales daybook

• Receivable ledger

• Cash book

Which of the following documents should accompany a return of good to a supplier?