Font size
WorksheetsF4 POA Multiple Choice T1
Total questions: 15
Worksheet time: 8mins
To calculate profit, a sole trader prepares a/an
income and expenditure account
Income statement
Statement of Financial Position
Trial Balance
Which of the following is the most permanent asset?
Bank
Cash
Inventory
Accounts receivable
W. Smith transfers $200 cash from his business premises to the bank account. His total current assets figure
is unchanged
increases by $200
decreases by $200
increases by $400
Andre's bank account has a credit balance of $240. This means that he has
$240 in the bank
overdrawn her bank account by $240
transferred $240 from bank to cash
written cheques for $420
The double entry rules for recording assets are
debit to increase; debit to decrease
debit to increase; credit to decrease
credit to increase; credit to decrease
credit to increase; debit to decrease
The following double entry occured in the books of N. Bliss: debit Equipment; credit Lucky Ltd
Based on the above, what transaction has occured?
N. Bliss paid Lucky Ltd for equipment
Lucky Ltd paid N. Bliss for equipment
N. Bliss purchased equipment on credit from Lucky Ltd
Lucky Ltd purchased equipment on credit from N. Bliss
MDP Ltd receives a cheque for the rental of its premises. The double entry to record this transaction in MDP Ltd's books is
debit rent expense; credit bank
debit bank; credit rent revenue
debit premises; credit rent revenue
debit rent revenue; credit bank
External users of accounting information include
banks and creditors
banks and managers
creditors and employees
managers and employees
The effects of obtaining equipment using a loan are
increased assets and reduced liabilities
increased capital and increased assets
reduced liabilities and reduced capital
increased assets and increased liabilities
(a) principles is about moral principles and standards of behavior by which accounting professions must operate.
Being straightforward and honest in all professional and business relationships. Which term fits this description?
objectivity
confidentiality
integrity
professional competence and due care
Avoiding bias, conflicts of interest or the undue influence of others when making professional judgments. Which term fits this description?
objectivity
confidentiality
integrity
professional competence and due care
Avoiding the disclosure of information to others without permissio; not using a clients information for personal advantage. Which term fits this description?
objectivity
confidentiality
integrity
professional competence and due care
Keeping knowledge and skills at the appropriate level in order to deliver the services to clients diligently. Which term fits this description?
objectivity
confidentiality
integrity
professional competence and due care
Working capital =
Current asstes -Current Liabilies
Current Assets + Current Liabilities
Current Assets /Current Liabilities
Current Assets*Current Libilities
