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WorksheetsChapter 11 Accruals and prepayments
Total questions: 10
Worksheet time: 5mins
What is prepaid expense?
Business has incurred expense, but has not paid (still owe).
Business has not incurred expense, but has paid.
What is accrued expense?
Business has incurred expense, but has not paid (still owe).
Business has not incurred expense, but has paid.
What is income received in advance?
Business has earned the income, but has not received the money.
Business has not earned the income, but has received the money.
What is income receivable/ accrued income?
Business has earned the income, but has not received the money.
Business has not earned the income, but has received the money.
On 1 January 2017, $14 000 cheque was paid for rental expense for 14 months.
How much rental expense was incurred for year ended 31 December 2017?
$14 000
$12 000
$2 000
$1 000
Business repaired 8 buses at a repair cost of $1000 per bus. A cheque of $6000 was paid on 31 December 2018.
State the account and amount to be recorded in the statement of financial position as at 31 December 2018?
$8000 prepaid repairs expense
$2000 prepaid repairs expense
$6000 accrued repairs expense
$2000 accrued repairs expense
On 1 June 2017, a cheque of $33,000 was paid for 10 months from 1 June 2017 to 31 March 2018. 2 months of rent was outstanding.
What is the account and amount to be recorded in the statement of financial position as at 31 May 2018?
$3300 accrued rental expense
$3300 prepaid rental expense
$6600 accrued rental expense
$6600 prepaid rental expense
An amount of $2350 commission income was received in 2018. An additional commission income of $470 was earned but not received.
How much commission income is earned for the year ended 31 December 2018?
$2820
$470
$1880
$2350
A landlord charges $200 rental per month. The landlord receives cheque $1400 during the year.
What is the account and amount shown in the statement of financial position?
$1000 rental received in advance
$1000 rental receivable/ accrued rent received
$1400 rental received in advance
$1400 rental receivable/ accrued rent received
For the year ended 31 March 2016, a business received commission income of $3000. Included in the amount was $200 for April 2016.
What is the commission income earned for the year ended 31 March 2016?
$3000
$3200
$2800
$200
