Which of the following statements is false?

On 9 October, Parker paid his heat and power bill for the three months ended 30 September 20X4. The bill included a meter rental charge of $60 for the three months ending 31 December 20X4 and a usage charge of $135 for the three month period to 30 September 20X4. Parker has an accounting year end date of 31 October 20X4. Which of the following pairs of adjustments is required in relation to the heat and power expense as at 31 October 20X4?

A company pays rent quarterly in arrears on 1 January, 1 April, 1 July and 1 October each year. The

rent was increased from $90,000 per year to $120,000 per year as from 1 October 20X2.

What rent expense and accrual should be included in the company’s financial statements for the year

ended 31 January 20X3?

At 31 March 20X2 a company had oil in hand to be used for heating costing $8,200 and an unpaid

heating oil bill for $3,600.

At 31 March 20X3 the heating oil in hand was $9,300 and there was an outstanding heating oil bill of

$3,200.

Payments made for heating oil during the year ended 31 March 20X3 totalled $34,600.

Based on these figures, what amount should appear in the company’s statement of profit or loss and

other comprehensive income for heating oil for the year?

A company has sublet part of its offices and in the year ended 30 November 20X3 the rent receivable

was:

Until 30 June 20X3 $8,400 per year

From 1 July 20X3 $12,000 per year

Rent was paid quarterly in advance on 1 January, April, July, and October each year.

What amounts should appear in the company’s financial statements for the year ended 30 November

20X3?

A business compiling its financial statements for the year to 31 July each year pays rent quarterly in

advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was increased from

$60,000 per year to $72,000 per year as from 1 October 20X3.

What figure should appear for rent expense in the business’s statement of profit or loss and other

comprehensive income for the year ended 31 July 20X4?

Diesel fuel in inventory at 1 November 20X7 was $12,500, and there were invoices awaited for

$1,700. During the year to 31 October 20X8, diesel fuel bills of $85,400 were paid, and a delivery

worth $1,300 had yet to be invoiced. At 31 October 20X8, the inventory of diesel fuel was valued at

$9,800. What is the value of diesel fuel to be charged to the statement of profit or loss and other

comprehensive income for the year to 31 October 20X8?

The year end of M Co is 30 November 20X0. The company pays for its gas by a standing order of $600 per month. On 1 December 20W9, the statement from the gas supplier showed that M Co had overpaid by $200. M Co received gas bills for the four quarters commencing on 1 December 20W9 and ending on 30 November 20X0 for $1,300, $1,400, $2,100 and $2,000 respectively.

Which of the following is the correct charge for gas in M Inc’s statement of profit or loss for the year ended 30 November 20X0?

A business compiling its financial statements for the year to 31 January each year pays rent quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. After remaining unchanged for some years, the rent was increased from $24,000 per year to $30,000 per year as from 1 July 20X0.

Which of the following figures is the rent expense which should appear in the statement of profit or loss

for year ended 31 January 20X1?

A company receives rent for subletting part of its office block.

What figures, based on these receipts, should appear in the company's financial statements for the year ended 30 November 20X2?

A company pays rent quarterly in arrears on 1 January, 1 April, 1 July and 1 October each year. The rent was increased from $90,000 per year to $120,000 per year as from 1 October 20X2.

What rent expense and accrual should be included in the company's financial statements for the year ended 31 January 20X3?

At 31 March 20X2 a company had oil in hand to be used for heating costing $8,200 and an unpaid heating oil bill for $3,600.

At 31 March 20X3 the heating oil in hand was $9,300 and there was an outstanding heating oil bill of $3,200.

Payments made for heating oil during the year ended 31 March 20X3 totalled $34,600.

Based on these figures, what amount should appear in the company's statement of profit or loss and other comprehensive income for heating oil for the year?

A company has sublet part of its offices and in the year ended 30 November 20X3 the rent receivable was:

Until 30 June 20X3 - $8,400 per year

From 1 July 20X3 - $12,000 per year

Rent was paid quarterly in advance on 1 January, April, July, and October each year.

What amounts should appear in the company's financial statements for the year ended 30 November 20X3?

A business compiling its financial statements for the year to 31 July each year pays rent quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was increased from $60,000 per year to $72,000 per year as from 1 October 20X3.

What figure should appear for rent expense in the business’s statement of profit or loss and other comprehensive income for the year ended 31 July 20X4?

Diesel fuel in inventory at 1 November 20X7 was $12,500, and there were invoices awaited for $1,700. During the year to 31 October 20X8, diesel fuel bills of $85,400 were paid, and a delivery worth $1,300 had yet to be invoiced. At 31 October 20X8, the inventory of diesel fuel was valued at $9,800.

What is the value of diesel fuel to be charged to the statement of profit or loss and other comprehensive income for the year to 31 October 20X8?

The electricity account for the year ended 30 June 20X1 was as follows.

Which of the following is the appropriate entry for electricity?

The year end of M Co is 30 November 20X0. The company pays for its gas by a standing order of $600 per month. On 1 December 20W9, the statement from the gas supplier showed that M Co had overpaid by $200. M Co received gas bills for the four quarters commencing on 1 December 20W9 and ending on 30 November 20X0 for $1,300, $1,400, $2,100 and $2,000 respectively.

Which of the following is the correct charge for gas in M Inc's statement of profit or loss for the year ended 30 November 20X0?

A business compiling its financial statements for the year to 31 January each year pays rent quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. After remaining unchanged for some years, the rent was increased from $24,000 per year to $30,000 per year as from 1 July 20X0.

Which of the following figures is the rent expense which should appear in the statement of profit or loss for year ended 31 January 20X1?

B, a limited liability company, receives rent for subletting part of its office premises to a number of tenants.

In the year ended 31 December 20X4 B received cash of $318,600 from its tenants.

All rent owing was subsequently received

What figure for rental income should be included in the statement of profit or loss of B for 20X4?

During 20X4, B, a limited liability company, paid a total of $60,000 for rent, covering the period from 1 October 20X3 to 31 March 20X5.

What figures should appear in the company's financial statements for the year ended 31 December 20X4?

The trainee accountant at Judd Co has forgotten to make an accrual for rent for December in the financial statements for the year ended 31 December 20X2. Rent is charged in arrears at the end of February, May, August and November each year. The bill payable in February is expected to be $30,000. Judd Co’s draft statement of profit or loss shows a profit of $25,000 and draft statement of financial position shows net assets of $275,000.

What is the profit or loss for the year and what is the net asset position after the accrual has been included in the financial statements?

Buster's draft financial statements for the year to 31 October 20X5 report a loss of $1,486. When he prepared the financial statements, Buster did not include an accrual of $1,625 and a prepayment of $834.

What is Buster's profit or loss for the year to 31 October 20X5 following the inclusion of the accrual and prepayment?

Bookz Co pays royalties to writers annually, in February, the payment covering the previous calendar year.

As at the end of December 20X2, Bookz Co had accrued $100,000 in royalties due to writers. However, a check of the royalty calculation performed in January 20X3 established that the actual figure due to be paid by Bookz Co to writers was $150,000.

Before this under-accrual was discovered, Bookz Co's draft statement of profit or loss for the accounting year ended 31 December 20X2 showed a profit of $125,000 and their draft statement of financial position showed net assets of $375,000.

What will Bookz Co's profit and net asset position be after an entry to correct the under-accrual has been processed?

Which of the following statements regarding payables and receivables are TRUE?

1. Payables represent money the business owes.

2. Payables are an asset.

3. Receivables represent money owed to the business.

At 31 December 20X2 a company's receivables totaled $4,00,000 and an allowance for receivables of $50,000 had been brought forward from the year ended 31 December 20X1.

It was decided to write off debts totaling 38,000. The allowance for receivables was to be adjusted to the equivalent of the 10% of the receivables.

What charge for receivables expense should appear in the company's statement of profit or loss for the year ended 31 December 20X2?

At 1st July 20X2 the receivables allowance of Q was $18,000.

During the year ended 30 June 20X3 debts totaling $14,600 were written off. The receivables allowance required was to be $16,000 as at 30 June 20X3.

What amount should appear in Q's statement of profit or loss for receivables expense for the year ended 30 June 20X3?

At 30 September 20X2 a company's allowance for receivables amounted to $38,000, which was equivalent to 5% of the receivables at that date.

At 30 September 20X3 receivables totaled $8,68,500. It was decided to write off $28,500 of debts as irrecoverable. The allowance for receivables required was to be the equivalent of 5% of receivables.

What should be the charge in the statement of profit or loss for the year ended 30 September 20X3 for receivables expense?

At 1 July 20X3 a limited liability company had an allowance for receivables of $83,000. During the year ended 30 June 20X4 debts totaling $1,46,000 were written off. At 30 June 20X4 a receivables allowance of $2,18,000 was required.

What figure should appear in the company's statement of profit or loss for the year ended 30 June 20X4 for receivables expense?

A company has received cash for a debt that was previously written off. Which of the following is the correct double entry to record the cash received?

At 31 December 20X4 a company's trade receivables totaled $8,64,000 and the allowance for receivables was $48,000.

It was decided that totaling $13,000 were to be written off. The allowance of receivables was to be adjusted to the equivalent of 5% of the receivables.

What figures should appear in the statement of financial position for trade receivables (after deducting the allowance) and in the statement of profit or loss for receivables expense ?

Which of the following would a decrease in the allowance for receivables result in?

An increase in an allowance for receivables of $8,000 has been treated as a reduction in the allowance in the financial statements. Which of the following explains the resulting effects?

At 1 January 20X1, there was an allowance for receivables of $3,000. During the year, $1,000 of debts were written off as irrecoverable, and $800 of debts previously written off were recovered.

At 31 December 20X1, it was decided to adjust the allowance for receivables to 5% of receivables which are $20,000.

What is the total receivables expense for the year?

A company has been notified that a customer has been declared bankrupt. The company had previously made an allowance for this debt.

Which of the following is the correct double entry to account for this new information

At the beginning of the year, the allowance for receivables was $850. at the year end, the allowance required was $1000. During the year $500 of debts were written off, which includes $100 previously included in the allowance for receivables.

What is the charge to statement of profit or loss for receivables expense for the year?

Which of the following statements are correct?

1. An agreed receivables analysis shows how long invoices for each customer have been outstanding.

2. A credit limit is a tool applied by the credit control department to make suppliers provide goods on time.

3. Receivables are included in the statement of financial position net of the receivables allowance.

4. Credit limits are applied to customers who purchase goods using cash only.

What is the value of Roberta's current liabilities at 31 May 20X7?

Which one of the following statements is NOT a benefit of offering credit facilities to customers?

What is the correct double entry for discounts received?

Which of the following are examples of payables of a business?

Which of the following are not examples of payables of a business?

1. An estimation of tax owed to the tax authority for the year just ended.

2. Rs.500 owed to a supplier for invoiced goods.

3. An estimation of probable repair costs under warranty claims

A company has been notified that a customer has been declared bankrupt. The company had previously made an allowance for this debt. Which of the following is the correct double entry to account for this new information?

What figure should appear in the company’s statement of profit or loss for rent receivable in the year ended 30 June 2006?

Carol had receivables of $598,600 at 30 November 20X8. Her allowance for receivables at

1 December 20X7 was $12,460. She wished to change it to the equivalent of 2% of receivables at 30 November 20X8. On 29 November 2008 she received $635 in full settlement of a debt that she had written off in the year ended 30 November 20X7.

What total amount should be recognized for receivables in the statement of profit or loss for the year ended 30 November 20X8?

What does an increase in the allowance for receivables result in?

A company owns a number of properties which are rented to tenants.

Cash received from tenants in the year ended 30 June 2006 was $834,600.

All rent in arrears was subsequently received.

What figure should appear in the company’s statement of profit or loss for rent receivable in the year ended 30 June 2006?

At 30 June 20X5 a company’s allowance for receivables was $39,000. At 30 June 20X6 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000. The receivables allowance was to be adjusted to an amount equivalent to 5% of the trade receivables.

What figure should appear in the statement of profit or loss for the year ended 30 June 20X6 receivables expense?