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Worksheets11ACC Revision
Total questions: 13
Worksheet time: 7mins
All of the following are aims of an accounts receivable system, except for?
To be paid in full and on time
To maximise potential sales
To maintain a good credit rating
To minimise bad debts
Select all of the aims of an inventory subsystem.
Keep all stock safe from theft
Minimise wastage
Taking advantage of discounts
Maintain sufficient level of stock to meet customer demand
All of the following are aims of the accounts payable subsystem, except for?
Maintain a good credit rating
Ensure that bills are paid only once and are legitimate
Ensure bills are paid in a timely manner
Maintain inventory quality while minimising costs
Identify the internal control principle that applies: No person who handles the physical assets of cash or inventories should have access to the accounts receivable records
Competent and reliable personal
Authority
Physical controls
Separation of duties
Identify the internal control principle that applies: Checks should be made before any payments for accounts payable are made.
Authorisation
Verification
Accurate documents and records
Physical controls and security
Identify all of the correct responses regarding GST for trading businesses.
GST clearing is debited for purchases of assets
GST clearing is credited for payments of expenses
GST clearing is credited for sales revenue earned
If the final balance of GST Clearing is a debit, then it is treated as a liability
Which two accounts are most at risk of becoming bad debts?
Lamont Industries
Mullins B
Munnt Bros
Nowles B
Why would Blacklock Traders have the largest credit limit?
They have never had debt overdue
They may have demonstrated their ability to pay on time and in full over a reasonable period of time
They are the most likely to become bad debts
They are the least likely to pay on time and in full
What accounts are required for a sale of goods?
Accounts Receivable, Sales and Inventories
Bank, GST, Sales, Cost of Goods Sold and Inventories
Accounts Payable, GST, Sales, Cost of Goods Sold and Inventories
Bank, GST, Sales, Accounts Receivable and Inventories
All of these accounts do not have GST, except for?
Wages
Loan
Interest Revenue
Advertising
Select all of the relevant aims of internal control:
Prevent errors from being made
Detect errors if they are made
Prevent theft and fraud
Ensure staff are highly motivated and engaged
A type of inventory system where inventories, sales and cost of goods sold are automatically updated when transactions occur.
Perpetual inventory system
Periodic inventory system
Classic inventory system
Management inventory system
Advantages of a perpetual inventory system include:
Business knows what items should be on hand and this is useful for decision making
A physical stocktake is required in order determine the level of inventories
Financial reports can be prepared at any time
Allows theft/wastage to be identified more easily
