WorksheetsSPRING 2025
Total questions: 10
Worksheet time: 5mins
Information is ____ if it is capable of making a difference in user's decision
timely
comparable
relevant
understandable
This enhancing quality assures users that the information faithfully represents the data it intends to communicate.
Comparability
Verifiability
Timeliness
Understandability
The business is assumed to have indefinite life in the absence of evidence to the contrary.
Economic entity
going concern
Time period (periodicity of income)
Monetary unit
What is the accounting entry for withdrawing cash from the bank to cash fund in order to pay salaries for employees 20,000?
Debit Account 334 -Payable to Employees 20,000
Credit Account 112 - Cash at Bank 20,000
Debit Account 334 - Payable to Employees
Credit Account 111 - Cash 20,000
Debit Account 111 - Cash 20,000
Credit Account 112 - Bank 20,000
Debit Account 112 - Bank 20,000
Credit Account 111 - Cash 20,000
State the economic content of the transaction: Debit Account 331 - Payable to suppliers 10,000 / Credit Account 111 - Cash 10,000
Cash payment to settle debt to customers 10,000
Customers repay debt to the business in cash 10,000
The seller deducts the debt for the business 10,000
Cash payment to settle debt to the seller (advance payment to the seller) 10,000
Record the transaction: 'Purchase of tools for immediate use in production worth 20,000, paid in cash with VAT 10%.'
Debit Acc 152 - Materials 20,000
Debit Acc 133 - VAT deductible 2,000
Credit Acc 111 - Cash 22,000
Debit Acc 627 - Production Overheads 20,000
Debit Acc 133 - VAT deductible 2,000
Credit Acc 111 - Cash 22,000
Debit Acc 621 - Direct Material Costs 20,000
Debit Acc 3331 - VAT payable 2,000
Credit Acc 111 - Cash 22,000
Debit Acc 621 - Direct Material Costs 20,000
Debit Acc 133 - VAT deductible 2,000
Credit Acc 111 - Cash 22,000
Entry to record the purchase of materials by cash under Periodic Inventory Method (VAT is deductible).
Debit Acc 152 - Materials
Debit Acc 133 - Deductible VAT
Credit Acc 111 - Cash
Debit Acc 611 - Purchases
Debit Acc 133 - Deductible VAT
Credit Acc 111 - Cash
Debit Acc 152 - Materials
Debit Acc 133 - Deductible VAT
Credit Acc 331 - Payable to Suppliers
Debit Acc 611 - Purchases
Debit Acc 133 - Deductible VAT
Credit Acc 331 - Payable to Suppliers
Statement 1: Under FIFO inventory method, Raw materials inventory is reported at earliest cost while Cost of Goods Sold is reported at latest cost.
Statement 2: Under periodic average method, the total cost of inventory is divided by the total units available during the period to arrive at the average unit cost.
Statement 1 is True while Statement 2 is False
Statement 1 is False while Statement 2 is True
Both statements are true
Both statements are false
How should import duties be dealt with when valuing inventories according to VAS 2 - Inventories?
Ignored
Deducted from cost
Deducted in arriving at NRV
Added to cost
Under VAS 03 - Tangible Fixed Assets, which of the following should be included in the initial cost of the asset?
Installation and assembly costs
Costs of training staff on the new asset
Apportioned general overhead costs
All of the above
