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WorksheetsRevision UPS 2
Total questions: 40
Worksheet time: 40mins
The usual sequence of steps in the transaction recording process is
journal --> analyze --> ledger.
analyze --> journal --> ledger.
journal --> ledger --> analyze.
ledger --> journal --> analyze.
The first step in the recording process is to
prepare financial statements.
analyze each transaction for its effect on the accounts.
post to a journal.
prepare a trial balance.
After transaction information has been recorded in the journal, it is transferred to the
trial balance.
income statement.
book of original entry.
ledger.
What's accounting cycle after trial balance?
Ledger
Adjustment Journal
Work Sheet
Financial Reports
The financial reports consist of ....
Income statement, statement of change in equity, balance sheet, trial balance
Income statement, statement of change in equity, balance sheet, cash flow
Income statement, balance sheet, trial balance, cash flow
Statement of change in equity, balance sheet, trial balance, cash flow
Issued by the seller to the buyer in the event of a credit transaction.
Invoice
Delivery Notes
Debit Notes
Credit Notes
Purchase Order
Internal documents issued by a business to record any kind of payments.
Invoice
Delivery Notes
Payment Voucher
Credit Notes
Purchase Order
Issued by the bank to the account holder at the end of the month.
Receipt
Payment Voucher
Cheque Stubs
Bank Slip
Bank Statement
Issued by the seller to the buyer to inform the buyer that his account has been credited in the seller’s books of accounts (reduce debt.)
Invoice
Delivery Notes
Debit Notes
Credit Notes
Purchase Order
A ledger that is summarized in a single general ledger account.
Controlling Ledger
Subsidiary Ledger
Accounts Payable Account
Sub Account
What Journal would you record the transaction on this source document in?
Sales Journal
Purchase Journal
Cash Receipt Journal
Cash Payment Journal
General Journal
Customer returned goods as the goods are defected
Sales Journal
Purchase Journal
General journal
Cash receipt journal
Purchases of Merchandise on credit are recorded in the
Sales Journal
Purchases Journal
Cash Receipts Journal
Cash Payments Journal
General Journal
Adjusting entries are made:
At the beginning of the year
At the end of the year
During the year
All of these
Expenses whose benefit has not yet been received but whose payment has been made are called:
Prepaid expenses
Accrued expenses
Outstanding expenses
Payable expenses
At the end of accounting period, prepaid expense would be shown in the statement of financial position as a
Non current asset
Non-current liability
Current asset
Current liability
Every adjusting entry affects?
Income statement only
Statement of financial position only
Income statement and statement of financial position
None
Accumulated depreciation is
a contra asset account
an expense account
an owner's equity account
a liability account
Which are NOT TRUE about capital expenditure?
Any expenditure incurred to acquire
an asset or and bring it into
working condition.
Improve the efficiency or substantial
working life of the asset
The benefit is received over
a period of more than one year.
Report in the Statement of
Profit and Loss
Expenses against which goods or services have been received but payment has not been made are called:
Prepaid expenses
Accrued expenses
Outstanding expenses
Advance expenses
A law firm has billed their clients for services performed. They subsequently received payments from their clients. What entry will the law firm make upon receipt of the payments?
Debit Unearned Service Revenue and credit Service Revenue
Debit Cash and credit Accounts Receivable
Debit Accounts Receivable and credit Service Revenue
Debit Cash and credit Service Revenue
The expense recognition principle matches
customers with businesses.
expenses with revenues.
assets with liabilities.
creditors with businesses.
Adjustment for accrued revenues:
have liabilities and revenue account relationship
have an assets and revenues account relationship.
decrease assets and revenues
decrease liabilities and increase revenues
Trial balance shows Supplies RM1,350. If RM600 of Supplies are on hand at the end of the period, the adjusting entry is:
debit Supplies RM600, credit Supplies expense RM600
debit Supplies RM750, credit Supplies expense RM750
debit Supplies expense RM750, credit Supplies RM750
debit Supplies expense RM600, credit Supplies RM600
If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are
debit Unearned Service Revenue and credit Cash.
debit Unearned Service Revenue and credit Service Revenue.
debit Unearned Service Revenue and credit Prepaid Expense.
debit Unearned Service Revenue and credit Accounts Receivable.
Accrued revenues are
cash received and a liability recorded before services are performed.
revenue for services performed and recorded as liabilities before they are received.
revenue for services performed but not yet received in cash or recorded.
revenue for services performed and already received in cash and recorded.
An asset—expense relationship exists with
liability accounts.
revenue accounts.
prepaid expense adjusting entries.
accrued expense adjusting entries.
Which of these is NOT a source document?
receipt
statement of account
deposit slip
visitor's register
2. These are deposits made but not yet credited by the bank to the depositor’s bank account.
Credit memos (CM)
Debit memos (DM)
Outstanding checks (OC)
Deposits in transit (DIT)
5. These are checks drawn and released to payees but are not yet encashed with the bank.
a. Credit memos (CM)
b. Debit memos (DM)
c. Outstanding checks (OC)
d. Deposits in transit (DIT)
6. Which of the following is added to the cash balance per books when preparing a bank reconciliation statement?
a. Dividend
b. Bank charges
c. Outstanding check (OC)
d. Deposit in transit (DIT)
10. As an internal control, bank reconciliation statements are usually prepared
a. daily
b. monthly
c. annually every year-end
d. whenever the accountant feels like it
If the bank charges the business fees, the bank makes a debit entry in the bank statement.
True
False
What do we call a cheque that the bank refused to pay the payee because the drawer has insufficient funds in his current account?
Stale cheque
Dishonoured cheque
Sad cheque
Dubious cheque
An adjusting entry is not required for
outstanding checks
collection of a note by the bank
NSF checks
bank service charges
Deposits in transit
have been recorded on the company's books but not yet by the bank
have been recorded by the bank but not yet by the company
have not been recorded by the bank or the company
are checks from customers which have not yet been received by the company
In preparing a bank reconciliation, outstanding checks are
added to the balance per bank
deducted from the balance per books
added to the balance per books
deducted from the balance per bank
In preparing a bank reconciliation, standing order are
added to the balance per bank
deducted from the balance per books
added to the balance per books
deducted from the balance per bank
