YEAR 12 FINANCIAL ACCOUNT SECOND TERM EXAM

What is a personal cost budget?

• A plan for how to spend money on needs and wants

• A plan for how to save money

• A plan for how to invest money

• A plan for how to borrow money

Which of the following is a step in preparing a personal cost budget?

• Identifying income

• Identifying expenses

• Categorizing expenses

• All of the above

Which of the following is a type of expense that should be included in a personal cost budget?

• Fixed expenses

• Variable expenses

• Periodic expenses

• All of the above

Why is it important to review and revise a personal cost budget regularly?

• To ensure that expenses are staying within budget

• To ensure that income is increasing

• To ensure that savings are increasing

• To ensure that debt is decreasing

Which of the following is a characteristic of a branch account?

• It is used to record transactions of the head office

• It is used to record transactions of a specific department

• It is used to record transactions of a specific location

• It is used to record transactions of a specific customer

What is the purpose of preparing a branch account?

• To determine the profit or loss of the branch

• To determine the profit or loss of the head office

• To determine the financial position of the branch

• To determine the financial position of the head office

Which of the following is a type of branch account?

• Dependent branch account

• Independent branch account

• Regional branch account

• All of the above

What is a joint venture?

• A partnership between two or more businesses for a specific project or purpose

• A partnership between two or more individuals for a specific project or purpose

• A business owned and operated by two or more individuals

• A business owned and operated by a single individual

What is the purpose of preparing a joint venture account?

• To determine the profit or loss of the joint venture

• To determine the financial position of the joint venture

• To determine the cash flow of the joint venture

• To determine the tax liability of the joint venture

Which of the following is a characteristic of a joint venture account?

• It is a temporary account that is closed at the end of the joint venture

• It is a permanent account that remains open indefinitely

• It is a nominal account that is used to record revenues and expenses

• It is a real account that is used to record assets and liabilities