WorksheetsWeek 9 revision
Total questions: 14
Worksheet time: 7mins
What are revenues?
Income received as a result of usual business operations
Income received from all activities including selling non-current assets
Profit received from business activities
These are all revenues
What are expenses?
Amounts paid in the course of earning revenues
All amounts a business pays for anything at all including purchasing non-current assets
Amounts paid to the owner
All of these are expenses
What is owner's equity?
The value of the business to the owner. eg: Assets ($20K) - liabilities ($2K) = Owner's equity ($18K)
The value of assets in the business. Eg: if a building is $20K, then owner's equity is $20K
The value of liabilities in the business. Eg: if a loan is $2K, then Owner's equity is $2K
None of these answers is correct
What are the rules of debits and credits?
They are used to increase or decrease the balance of an account, depending on the nature of the account.
For every transaction, the total of debits must equal the total of credits.
Every transaction will involve two or more accounts and involve both debit and credit amounts.
These are all rules of debits and credits
Why do we use a general journal?
Its a place to record all the transactions of a business.
It shown transactions in date order which is easier to read.
It helps check that debits equal credits for every entry.
These are all good reasons.
What is a general ledger?
A reports that shows all debits and credits a business uses.
A set of accounts where the balance of each individual account is calculated
All of these are correct.
A place where all business transactions are recorded.
What is a trial balance?
A list of all accounts, their balance and totals of all debits and credits
A list of only revenue, expense and profit accounts
A list of only asset, liability and equity accounts
A list of all accounts with an allocated account number
What is an adjusted trial balance?
A list of all accounts, their balance and totals of all debits and credits AFTER adjusting entries are done
A list of all accounts, their balance and totals that have been ADJUSTED so that debits equal credits
A list that has been ADJUSTED to show only asset, liability and equity accounts
A list of all accounts that has been ADJUSTED to show accounts after closing entries have been done.
What is a post closing trial balance?
A trial balance completed after closing entries to check that debits still equal credits
A trial balance that shows the revenue, expense and withdrawal accounts that have been closed
A trial balance that is completed before the closing entries are processed
A trial balance that is completed after adjusting entries are completed.
Why do we need adjusting entries?
To match revenues and expenses in the same period.
To ensure profit is correctly calculated for the period
To ensure assets and liabilities are correctly recorded at the end of the period
All of these are good reasons
What are prepaid expenses?
Amounts paid in advance for some future benefit
Amounts received in advance of providing goods or services
A cost that has been incurred but not yet recorded in the books
Income that has been earned but not yet recorded in the books
What are Accrued expenses?
Amounts paid in advance for some future benefit
Amounts received in advance of providing goods or services
A cost that has been incurred but not yet recorded in the books
Income that has been earned but not yet recorded in the books
What are Accrued Revenue?
Amounts paid in advance for some future benefit
Amounts received in advance of providing goods or services
A cost that has been incurred but not yet recorded in the books
Income that has been earned but not yet recorded in the books
What are unearned revenue?
Amounts paid in advance for some future benefit
Amounts received in advance of providing goods or services
A cost that has been incurred but not yet recorded in the books
Income that has been earned but not yet recorded in the books
