Font size
WorksheetsLecture 4 ACC1014
Total questions: 10
Worksheet time: 11mins
Revenue is recognized in the period in which it is earned
Which from of accounting best suits this description?
Cash Basis
Accrual Basis
Expense is recognized in the period where actual cash is paid out
Which form of accounting best suits this description?
Cash Basis
Accrual Basis
Which accounting principle forms the basis of accrual accounting?
Revenue Recognition Principle
Matching principle
Business entity principle
Duality concept
Which one of these is considered as a liability?
Accrued expenses
Accrued revenue
Deferred (prepaid) expenses
Deferred (unearned) revenue
Which of the following adjustments involves the recognition of revenue/expense first before the recognition of asset/liabilities?
Asset & Liabilities Method
Revenue & Expense Method
Tran, the owner of Tran’s Clothing Alterations had an accrued utilities expenses worth RM2,000 as at 31st Dec 2019.
Choose the correct accounting entry that records this transaction.
(Dr - Debit entry, Cr - Credit entry)
Dr utilities expense 2000
Cr Cash
2000
Dr utilities expense 2000
Cr accrued utilities expense 2000
Dr accrued utilities expense 2000
Cr utilities expense
2000
Dr cash 2000
Cr utilities expense 2000
Tran, the owner of Tran’s Clothing Alterations paid RM2,400 for a 24-month insurance policy starting in Oct 2019. The financial year end of the business is at year ending Dec 2019.
Choose the correct accounting entry that records this transaction. (using asset liabilities method)
Dr insurance expense 2400
Cr Cash 2400
Dr insurance expense 2400
Cr Cash 2400
Dr prepaid insurance 2100
Cr insurance expense 2100
Dr prepaid insurance 2400
Cr Cash 2400
Dr prepaid insurance 2400
Cr Cash 2400
Dr insurance expense 300
Cr prepaid insurance 300
Tran, the owner of Tran’s Clothing Alterations settled the RM500 owed for Utilities Expense.
Choose the accounting entry that records this transaction.
Dr utilities expense 500
Cr Cash 500
Dr Cash 500
Cr accrued utilities expense 500
Dr accrued utilities expense 500
Cr Cash 500
Dr Cash 500
Cr utilities expense 500
What is the difference between asset-liabilities adjustment method and revenue-expense adjustment method?
Tran, the owner of Tran’s Clothing Alterations had an accrued utilities expenses worth RM2,000 as at 31st Dec 2019.
Choose the correct accounting entry that records this transaction.
(Dr - Debit entry, Cr - Credit entry)
Dr utilities expense 2000
Cr Cash
2000
Dr utilities expense 2000
Cr accrued utilities expense 2000
Dr accrued utilities expense 2000
Cr utilities expense
2000
Dr cash 2000
Cr utilities expense 2000
