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Chapter 14: Impairment Loss

Total questions: 14

Worksheet time: 9mins

Name
Class
Date
1.

What is meant by allowance for impairment loss?

a)

A dead person unable to pay what he owes

b)

When you suspect that a trade receivable is unable to pay

c)

When a person is suspected to be bankrupt

d)

Whenever impairment for allowance is recorded

2.

Which of the following correctly defines prudence concept?

a)

To understate expense and overstate income

b)

To overstate expense and understate income

c)

To not overstate assets and profit.

d)

To not overstate expense

3.

Where should you record your Impairment Loss on Trade Receivables?

a)

Income statement, under expense

b)

Income statement, under income

c)

Balance sheet, under current assets

d)

Balance sheet, under current liabilities

4.

Where should you record your Allowance for Impairment of Trade Receivables?

a)

Income statement, under expenses

b)

Income statement, under income

c)

Balance sheet, under current assets

d)

Balance sheet, under current liabilities

5.

When a trade receivable is BANKRUPT and UNABLE to pay, you...

a)

Debit Trade Receivables

b)

Credit Impairment Loss

c)

Credit Allowance for Impairment

d)

Credit Trade Receivables

6.

To INCREASE my allowance for impairment on trade receivables, I need to...

a)

Dr Allowance for impairment

Cr Impairment Loss

b)

Dr Impairment Loss

Cr Allowance for impairment

c)

Dr Trade Receivables

Cr Allowance for impairment

d)

Dr Allowance for impairment

Cr Trade Receivables

7.

To DECREASE my allowance for Impairment on trade receivables, I need to...

a)

Dr Trade Receivables

Cr Impairment Loss

b)

Dr Impairment Loss

Cr Allowance for Impairment Loss

c)

Dr Allowance for impairment Loss

Cr Trade Receivables

d)

Dr Allowance for Impairment Loss

Cr Impairment Loss

8.

To write off a debt due to BANKRUPTCY, I need to...

a)

Dr Allowance for Impairment

Cr Trade Receivables

b)

Dr Trade Receivables

Cr Allowance for Impairment

c)

Dr Allowance for Impairment

Cr Impairment Loss

d)

Dr Impairment Loss

Cr Allowance for Impairment

9.

Whenever a trade receivable is BANKRUPT/ DIES, I will credit trade receivables to...

a)

Increase trade receivables

b)

Increase impairment loss

c)

Decrease trade receivables

d)

Decrease allowance for impairment loss

10.

What are the entries you would encounter under IMPAIRMENT LOSS ACCOUNT?

a)

Balance b/d

Impairment Loss

Profit and Loss

b)

Balance b/d

Impairment Loss

c)

Allowance for Impairment Loss

Profit and Loss

d)

Allowance for Impairment Loss

Profit and Loss

Trade Receivables

11.

What are the entries you would encounter under ALLOWANCE FOR IMPAIRMENT LOSS ACCOUNT?

a)

Balance b/d

Impairment Loss

Trade Receivables

b)

Balance b/d

Trade Receivables

c)

Impairment Loss

Cash at Bank

d)

Allowance for impairment loss

Trade receivables

12.

*BONUS* Which of the following is your favourite subject?

a)

English

b)

Principles of Accounting

c)

Elementary Mathematics

d)

Science

13.

*BONUS* Which of the following subject is/ are the most crucial for N level?

a)

English

b)

Elementary Mathematics

c)

Principles of Accounting

d)

Sciences

14.

*BONUS* Which of the following is your FAVOURITE teacher?

a)

MISS LIM

b)

MRS LIM

c)

MR LIM

d)

MDM LIM