Font size
WorksheetsS'23 Wk 3&4 Revision
Total questions: 27
Worksheet time: 15mins
Select the GST free items (there is more than one to select)
Loans
Sales of non-exempt items
Electricity
Wages
Paying Ac Payables
GST collected is classified as;
Asset
Liability
Revenue
Expense
Purchased a car for $20,000 excluding GST. How much will the GST be?
$200
$220
$2,000
$2,200
Paid Garden Bag service $330 (inc GST). How much was the GST?
$3
$30
$33
$300
Sales of goods or services is a...
Cash funds given to the business by the Owner is recorded in which account?
Cash taken by the Owner for their own use is called
What is the Entity concept/assumption?
The owner's goal is to increase the owner’s wealth.
The business is treated as separate from the owner.
Accounts Payable and Receivable are separate entities.
Loans from the bank are treated separately from assets.
A business records transactions based on the dollars paid at the time of the transaction...
Historical cost concept
Monetary unit concept
Entity concept
Accrual accounting
The source documents for a transaction show the value of the exchange in terms of money...
Historical cost concept
Monetary unit concept
Entity concept
Accrual accounting
Assumes the business will continue to operate in the future
Going Concern
Accrual Accounting
Matching Principle
Accounting period assumption
Revenues and related expenses are recorded when the goods are provided regardless of when cash is received or paid
Going Concern
Accrual Accounting
Matching Principle
Accounting period assumption
Business operations can be divided into time spans so that totals of revenues and expenses can be reported
Going Concern
Accrual Accounting
Matching Principle
Accounting period assumption
Expenses incurred are matched against the revenues generated in the period
Going Concern
Accrual Accounting
Matching Principle
Accounting period assumption
What is the correct accounting equation?
Owner's Equity = Liabilities + Assets
Assets = Liabilities + Owner's Equity + Expenses
Assets = Liabilities+ Owner's Capital+Revenues-Expenses
Revenue = Liabilities + Owner's Equity + Assets+Expenses
The owner begins the business with cash deposited into the business bank account...
Cash (Asset) increases and Owner's Equity (Capital) increases
Cash (Asset) decreases and Owner's Equity (Capital) increases
Cash (Asset) decreases and Owner's Equity (Capital) decreases
Cash (Asset) increases and Owner's Equity (Capital) decreases
Paid 12 month's insurance in advance
Cash (asset) decreases / Prepaid Insurance (asset) increases & GST Paid (asset) increases
Cash (asset) decreases / Insurance expense (Liability) & GST Paid (asset) increases
Cash (asset) increases / Prepaid Insurance (asset) decreases & GST Paid (asset) decreases
Prepaid Insurance (asset), GST Paid (asset) and Ac Payable (Liability) all increase
Purchase office stationary (supplies) on credit
Supplies (asset), GST Paid (asset) & Account Payable (liability) all increase
Supplies (asset) & GST Paid (asset) both increase / Cash (asset) decreases
Supplies (asset) & GST Paid (asset) both decrease / Cash (asset) increases
Supplies (asset), GST Paid (asset) & Account Payable (liability) all decrease
Buy inventory for cash
Inventory (asset) & GST Paid (asset) increase / Cash (asset) decreases
Inventory (asset) & GST Paid (asset) decrease / Cash (asset) increases
Inventory (asset) & GST Paid (asset) and Cash (asset) all decrease
Inventory (asset) & GST Paid (asset) and Cash (asset) all increase
Buy shop equipment for part cash and partly on credit
Cash (asset) decrease / Shop Equipment, GST Paid (asset) & Ac Payable (liability) increases
Cash (asset) increase / Shop Equipment, GST Paid (asset) & Ac Payable (liability) decreases
Shop Equipment & GST Paid (asset) increase / Ac Payable (liability) decreases
Cash (asset), Shop Equipment (asset), GST Paid (asset) & Ac Payable (liability) all increase
Obtain a loan from the bank
Cash (asset) & Loan Payable (liability) both increase
Cash (asset) increase / Loan Payable (liability) decreases
Cash (asset) & Accounts Payable (liability) both increase
Cash (asset) increase / Loan Payable (liability) decrease
Sell old equipment on credit
Equipment (asset) decrease / Ac Receivable (asset) & GST Collected (liability) increase
Cash (asset) increase / Equipment (asset) & GST Collected (liability) decrease
Cash (asset) decrease / Equipment (asset) & GST Collected (liability) increase
Cash (asset) increase / Ac Payable (liability) & Equipment (asset) decrease
