Worksheets11ACC Module 2 Theory Qs Part 1
Total questions: 10
Worksheet time: 7mins
Select the key characteristics required to describe the Statement of Profit or Loss
shows the revenue, expenses and profit
shows the assets, liabilities and owner’s equity
for a period of time
at a point in time
All the statements below regarding the relationship between income and revenue are correct, except for?
Examples of other income include dividend revenue and commission revenue
Income does not include service fees revenue
Income includes both service fees and other income
Revenue is the main form of business income
The lifetime of a business is divided into equal time periods, usually one year. This allows the business to compare its financial performance from one year to the next, to other businesses or the industry average.
Going Concern Concept
Monetary Measurement
Accounting Entity Concept
Accounting Period Concept
Select the key characteristics required to explain the relationship between profit and the accounting equation
Profit = Revenue - expenses
Any profit is recognised as the return on the owner's investment
Profit is added to opening capital in the Statement of Financial Position, increasing OE
Profit reduces capital in the Statement of Financial Position, decreasing OE
End of month reporting includes:
Statement profit and loss
Statement of financial position
Statement of cash flows
All of the statements listed
End of month reporting allows the business to identify...
(a)
End of month reporting allows the business to propose...
(a)
Identify the correct components of cash flow from operations
Cash from customers
Cash paid to suppliers
Cash paid to employees
Capital contributions from the owner
All of the following statements are correct, except for?
Profit includes both service fees earned in cash and on credit
Profit should be equal to the closing bank balance
Cash flow from operations does not include any credit transactions
Profit includes both expenses paid in cash and incurred on credit
Identify the correct features of the Statement of Cash Flows.
Net cash from operating activities
Net cash from investing activities
Net cash from administrative activities
Net increase/decrease in cash held
