WorksheetsFINANCIAL STATEMENT WITH ADJUSTMENTS
Total questions: 10
Worksheet time: 5mins
Which side of the profit and loss account would you record bad debts?
A) Credit side
B) Debit side
C) Adjusted in trading account
D) Not recorded
Outstanding expenses appear on which side of the balance sheet?
A) Liabilities side
B) Assets side
C) Not shown in the balance sheet
D) Both sides
If rent is paid for 15 months instead of 12 months, how will this be adjusted in the financial statements?
A) No adjustment is needed
B) Show 3 months' rent as outstanding
C) Show 3 months' rent as prepaid
Show as an expenses
In the final accounts, unearned income is treated as:
A) An asset
B) A liability
C) An expense
D) A revenue
Which of the following is added to the opening capital in the balance sheet?
A) Drawings
B) Net loss
C) Fresh capital introduced
D) Expenses
The entry for depreciation on machinery is:
Debit Depreciation Account; Credit Machinery Account
Debit Machinery Account; Credit Depreciation Account
Debit Profit and Loss Account; Credit Depreciation Account
Debit Machinery Account; Credit Profit and Loss Account
What is the treatment of prepaid expenses in the financial statements?
A) Shown as an asset
B) Shown as a liability
C) Shown as an expense
D) Not recorded
How are accrued income or income due but not received reflected in the financial statements?
A) Shown as an asset
B) Shown as a liability
C) Shown as an expense
D) Not recorded
Calculation of the provision for bad debts on
A) Debtors
B) Bad Debts
C) Cash
D) Inventory
Which of the following is considered a current liability?
A) Long-term debt
B) Bills payable
C) Share capital
D) Fixed assets
