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WorksheetsChapter 11 Accruals and prepayments
Total questions: 14
Worksheet time: 8mins
The accrual concept states that _____ during a financial period, regardless of _______.
income and expenses are recorded when they are earned and incurred respectively, when collection is received and
payment is made.
assets and liabilities are recorded , when they occurred.
What are 2 accounting concepts applied to prepayments and accruals?
prudence and money measurement concepts
prudence and matching concepts
accounting entity and going concern concepts
matching and accruals concepts
What is prepaid expense?
Amount paid but not earned yet
Amount paid but not incurred yet
Amount not paid but incurred
Amount not paid but earned
What is accrued expense?
Amount paid but not earned yet
Amount paid but not incurred yet
Amount not paid but incurred
Amount not paid but earned
What is accrued income?
Amount received but not earned yet
Amount received but not incurred yet
Amount not received but incurred
Amount not received but earned
What is prepaid income?
Amount received but not earned yet
Amount received but not incurred yet
Amount not received but incurred
Amount not received but earned
In which section of the statement of financial position would you find prepaid insurance?
Non-Current Assets
Current Assets
Equity
Non-Current Liabilities
Current Liabilities
In which section of the statement of financial position would you find accrued advertising?
Non-Current Assets
Current Assets
Equity
Non-Current Liabilities
Current Liabilities
In which section of the statement of financial position would you find accrued commission received?
Non-Current Assets
Current Assets
Equity
Non-Current Liabilities
Current Liabilities
In which section of the statement would you find prepaid rent received?
Non-Current Assets
Current Assets
Equity
Non-Current Liabilities
Current Liabilities
