WorksheetsFinal Accounts of Sole Trader
Total questions: 18
Worksheet time: 10mins
A situation where a sole trader pays more for a business expense than they should for an accounting period is referred to as ....
Amounts Receivable
Accrual
Amounts Payable
Advanced Expenses
A situation where a sole trader pays less for a business expense than they should for an accounting period is referred to as ....
Amounts Receivable
Prepayment
Amounts Payable
Deferred Expenses
Examples of business expenses faced by a sole trader are
Rent,. Telephone, Discount Received
Rent, Advertising, Depreciation
Bad Debt, Depreciation and Purchases
Carriage In, Discount Allowed and Commission Received
Amounts Payable at the end of an accounting period are recorded in the Statement of Financial Position as
Current Assets
Current Liabilities
Non-Current Liabilities
Non-Current Assets
Amounts Receivable at the end of an accounting period are recorded in the Statement of Financial Position as
Current Assets
Current Liabilities
Non-Current Liabilities
Non-Current Assets
Depreciation is a
Business Expense
Current Asset
Current Liability
Other Income
The calculation for depreciation is
(Cost of Non-Current Asset - Provision for Depreciation) X % Depreciaton
NBV of Non-Current Asset X % Depreciation
Cost of Non-Current Asset + Depreciation
Cost of Non-Current Asset X % Depreciation
When a Non-Current Asset is reduced in value by an equal amount each year this is called
Equal Depreciation
Straight-Line Depreciation
Reducing Balance Depreciation
Instalment Depreciation
The fall in value of an asset is referred to as
Scrap Value
Wear and Tear
Net Book Value
Depreciation
Items of value that are likely to be in use by a business for several years are referred to as
Non-Current Liabilities
Current Liabilities
Current Assets
Non-Current Assets
Causes of Depreciation
Wear & Tear/Usage
Damage
New Models
Obsolete
How would Rent Received be dealt with in the Income Statement?
It would be added onto sales
It would be entered under Other Income
It would entered under Expenses
Sarah forgot to account for an outstanding bill for telephone of £100. State the inclusion of the telephone bill would have on Income Statement
Decrease Purchases
Decrease Cost of Sales
Decrease Profit for the year
Increase Gross Profit
Sarah forgot to account for an outstanding bill for telephone of £100. State the inclusion of the telephone bill would have on Statement of Financial Position.
Increase Amounts Receivable
Increase Working Capital
Increase Amounts Payable
Increase Net Worth
Describe the term bad debt.
Trades payables who do not pay
Trade payables who do pay
Trade receivables who do not pay
Trade payables who do pay
Describe the term provision for bad debt.
Trade receivables who do not pay
Trade payables who do not pay
Profit set aside to cover for customers who do not pay.
Anticipation of future bad debts
What effect will creating a provision for bad debt in the Income Statement?
It will increase Profit for the year
It will decrease Profit for the Year
It is included in the expenses section
It will appear in the cost of sales section
What effect will creating a provision for bad debt in the Statement of Financial Position?
It will increase Current Liabilities
It will decrease Non-Current Assets
It will increase Non-Current Liabilities
It will increase Current Assets
