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WorksheetsAGR323 - CHAPTER 3
Total questions: 15
Worksheet time: 6mins
Assets, liabilities and equity are found in
Balance sheet
Income statement
Cash flow statement
Transaction journal
Increase in the value of asset when it is sold is also known as
Profit
Revenue
Gains
Sales
Under accrual accounting, the cash flows and revenues/expenses can be recognize
at the same time
at different time
at time when it is paid
at time when the payment is due
Select ALL information related to cash accounting
Does not recognize accounts receivable or accounts payable
It records revenue when the actual transaction is completed and records expenses when it takes place
Accurate as it tracks your true financial position
One of the major benefits is seen in tax
Select ALL correct information related to accrual accounting
Recognize when cash transaction takes place
This method informs about the past transactions regarding the revenue and expense
Recognize when expenses in incurred
Recognize when revenue is earned
The followings are examples of output of accounting system EXCEPT
Transaction journal
Employee asset record
General ledger
Inventory report
This output contains the different financial accounts for the business and the balances in these accounts. What is the output?
Transaction journal
Balance sheet
General ledger
Income statement
Salvage value is an example of item recorded in _________
Inventory report
Income statement
Balance sheet
Depreciation schedule
________ is use to decide which business operations are contributing the most profit to the business
Income statement
Balance sheet
Enterprise report
Cash flow statement
Choose ALL correct information related to cash flow statement
Summarizes all sources and uses of cash during the accounting period
Tracks the quantity and value of crops and livestock on hand
Record of all financial transactions
Used to make comparison of actual and budgeted cash flow
_______ used to make entries to general ledger
Transaction journal
Inventory report
Family living expenses
Income tax report
______ can help owner to decide which business operation to expand, and which one to eliminate to maximize profit
Income statement
Balance sheet
Cash flow statement
Enterprise report
Certain expenditure can be used for tax deduction can be found in
Family living expenses
Employee record
Transaction journal
Inventory report
Depreciation represents the part of cost of the fixed asset are estimated to have limited _________
initial value
salvage lives
useful lives
ending value
The followings are true regarding accrual accounting EXCEPT
The nature of accounting is simple
The transaction is recorded on trade basis
Shows higher profit in income statement
Highly accurate
