WorksheetsChapters 6 & 7 Income & Expenses
Total questions: 19
Worksheet time: 7mins
Select ALL Current Assets.
Income Received in Advance
Income Receivable
Expense Payable
Prepaid Expense
Select ALL Current Liabilities.
Income Received in Advance
Income Receivable
Expense Payable
Prepaid Expense
Interest expense is $100 per month. The business has paid $500 during the year. Which of the following information at year end is correct?
Prepaid interest
$400
Prepaid interest
$700
Interest payable
$400
Interest payable
$700
On 1 April 2022, the prepaid salaries expense was $900.
Cheques paid for salaries for the year ended 31 March 2023 was $2,500.
Calculate the salaries expense incurred
during the year ended 31 March 2023.
$900
$1,600
$2,500
$3,400
On 1 July 2024, the commission expense payable was $200.
Cheque paid for commission expense during the year ended 30 June 2025 was $800.
Calculate the commission expense incurred
during the year ended 30 June 2025.
$200
$600
$800
$1,000
On 1 January 2023, the interest income receivable was $450.
$700 cheque was received during the year ended 31 December 2023.
Calculate the amount of interest income earned
for the year ended 31 December 2023.
$250
$450
$700
$1,150
On 30 June 2022, the rent income received in advance was $5,000.
$3,000 cash was received for rent during the year ended 30 June 2023.
On 30 June 2023, the rent income receivable was $600.
Calculate the amount of rent income earned for the year ended 30 June 2023.
$1,400
$2,600
$7,400
$8,600
On 31 May 2022, the prepaid insurance expense was $800.
$1,500 rent was received during the year ended 31 May 2023.
On 31 May 2023, the prepaid insurance expense was $300.
Calculate the insurance expense incurred for the year ended 31 May 2023.
$400
$1,000
$2,000
$2,600
State the double entry to record
Rent expense incurred.
Dr _____________
Cr _____________
(a)
(a) basis of accounting
states that expenses are recognised when incurred
and income is recognised when earned
regardless whether payment is made.
Matching theory
states that expenses _________
must be matched against the income earned in the
_______ accounting year
to determine ________ for the year.
(a)
Name this theory.
Income is recognised when goods are delivered or services are provided.
(a)
State the double entry to record
Rent income earned.
Dr _____________
Cr _____________
(a)
Select ALL the effects of not adjusting prepaid expense at year end.
Current asset overstated
Current asset understated
Profit for the year overstated
Profit for the year understated
The reversing entry
for prepaid utilities expense
at the beginning of the year is...
Dr Prepaid utilities
Cr Utilities
Dr Utilities
Cr Prepaid utilities
Dr Prepaid utilities
Cr Cash at bank
Dr Utilities
Cr Cash at bank
The reversing entry
for interest expense payable
at the beginning of the year is...
Dr Interest payable
Cr Interest expense
Dr Interest expense
Cr Interest payable
Dr Interest expense
Cr Cash at bank
Dr Interest payable
Cr Cash at bank
Select ALL the effects of not adjusting expense payable at year end.
Current asset understated
Current liability understated
Profit for the year overstated
Profit for the year understated
Select ALL the effects of not adjusting income receivable at year end.
Current assets overstated
Current assets
understated
Profit for the year overstated
Profit for the year understated
Select ALL the effects of not adjusting income received in advance at year end.
Gross profit overstated
Gross profit understated
Profit for the year overstated
Profit for the year understated
