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WorksheetsBASIC OF CASH AND ACCRUAL ACCOUNTING
Total questions: 10
Worksheet time: 8mins
All of the following are sources of expenses EXCEPT
Machinery fuel
Sales of good
Cost of good sold
Wages
Revenue is recorded when (a) for sale of product or service for cash accounting
In accrual accounting, revenue is recorded when it is (a)
Accrual accounting is preferred by business except because
It is easier to understand
It can be used to predict cash receipts
It gives a more accurate estimation of profit
It shows past transaction
One of accrual accounting advantages is
Simple and easy to use
Delay tax for growing crops
Cheap
Accurate estimation of profit
Expense is recorded when (a) for accrual accounting
Loss happens when there is _________ or __________ (you can choose more than one answer)
fluctuation in asset value
a decrease in asset value
money the company spend to cover for necessary adjustment
money the company spend to cover for unexpected revenue
Income from renting out your machinery can be considered as (a)
Cash basis and accrual basis accounting is differentiate based on the (a) of when cash flow and revenue/expenses recognise
The followings are disadvantages of cash accounting EXCEPT
It does not coincide with matching concept.
Require little to no knowledge in accounting
Less accurate
Require more time
