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Revision of G10 Adjustments

Total questions: 15

Worksheet time: 30mins

Name
Class
Date
1.

The Trading Stock Deficit account is considered to be a/an -

a)

Asset

b)

Liability

c)

Income

d)

Expense

2.

The Consumable Stores on Hand account is considered to be a/an -

a)

Asset

b)

Liability

c)

Income

d)

Expense

3.

The Depreciation account is considered to be a/an -

a)

Asset

b)

Liability

c)

Income

d)

Expense

4.

The Accrued Expenses account is considered to be a/an -

a)

Asset

b)

Liability

c)

Income

d)

Expense

5.

The Accrued Income account is considered to be a/an -

a)

Asset

b)

Liability

c)

Income

d)

Expense

6.

The Income Received in Advance account is considered to be a/an -

a)

Asset

b)

Liability

c)

Income

d)

Expense

7.

The Prepaid Expenses account is considered to be a/an -

a)

Asset

b)

Liability

c)

Income

d)

Expense

8.

An amount of R3 450 is owed to Telkom for the Telephone account at the end of the current financial year.

a)

DR Telephone, R3 450; CR Accrued Expenses, R3 450

b)

DR Accrued Expenses, R3 450; CR Telephone, R3 450

c)

DR Telephone, R3 450; CR Accrued Income, R3 450

d)

DR Accrued Income, R3 450; CR Telephone, R3 450

9.

Commission Income of R500 is still due at the end of the current year.

a)

DR Accrued Income, R500; CR Commission Income, R500

b)

DR Commission Income, R500; CR Accrued Income, R500

c)

DR Income Received in Advance, R500; CR Commission Income, R500

d)

DR Commission Income, R500; CR Income Received in Advance, R500

10.

The tenant has been renting out office space for the past two years. The rent amounts to R2 250 per month. R31 500 has been received during the current financial year.

a)

DR Rent Income, R2 250; CR Income Received in Advance, R2 250

b)

DR Rent Income, R4 500; CR Income Received in Advance, R4 500

c)

DR Rent Income, R22 500; CR Income Received in Advance, R22 500

d)

DR Rent Income, R5 250; CR Income Received in Advance, R5 250

11.

The business has a prepaid electricity meter installed. Unused electricity at the end of the financial year was R400.

a)

DR Prepaid Expenses, R400; CR Electricity, R400

b)

DR Electricity, R400; CR Prepaid Expenses, R400

c)

DR Accrued Expenses, R400; CR Electricity, R400

d)

DR Electricity, R400; CR Accrued Expenses, R400

12.

The Trading Stock account reflects a balance of R67 000 in the Pre-adjustment Trial Balance. A physical stock count at the end of the year revealed an amount of R66 000 in the storeroom.

a)

DR Trading Stock Deficit, R1 000; CR Trading Stock, R1 000

b)

DR Trading Stock, R1 000; CR Trading Stock Deficit, R1 000

c)

DR Trading Stock Deficit, R66 000; CR Trading Stock, R66 000

d)

DR Trading Stock, R1 000; CR Trading Stock Surplus, R1 000

13.

The Packing Materials account reflects a total of R6 500 in the Pre-adjustment Trial Balance. Unused packing material at the end of the year amounts to R500.

a)

DR Consumable Stores on Hand, R500; CR Packing Materials, R500

b)

DR Packing Materials, R500; CR Consumable Stores on Hand, R500

c)

DR Consumable Stores on Hand, R6 000; CR Packing Materials, R6 000

d)

DR Consumable Stores on Hand, R6 000; CR Packing Materials, R6 000

14.

The GAAP Principle being applied when doing adjustments for Consumable Stores on Hand, Prepaid Expenses, Accrued Expenses, Income Received in Advance and Accrued Income is:

a)

Matching

b)

Prudence

c)

Going Concern

d)

Materiality

15.

The GAAP Principle being applied when doing adjustments for Trading Stock Deficit and Depreciation is:

a)

Matching

b)

Prudence

c)

Going Concern

d)

Materiality