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B215 Revision

Total questions: 8

Worksheet time: 4mins

Name
Class
Date
1.

Which one of the following financial statements would provide a user with information regarding the amount of accounts receivables owing from customers?

a)

Statement of Changes in Equity

b)

Statement of Comprehensive Income

c)

Statement of Financial Position

d)

Statement of Cash Flows

2.

Which of the following enhancing qualitative characteristics is best described by the sentence below?

“Classifying and presenting financial information clearly and concisely to make it easier for users to comprehend.”

a)

Comparability

b)

Relevance

c)

Understandability

d)

Faithful Representation

3.

On 1 July 2025, Toodle, an art supplies company, purchased a printer costing $8,000 for office use. The printer was delivered on the same day, but payment has not yet been made.

Which of the following journal entries should Toodle record?

a)

Dr. Office Equipment, Cr. Cash

b)

Dr. Inventory, Cr. Accounts Payable

c)

Dr Office Supplies Expense Cr. Other Payables

d)

Dr. Office Equipment, Cr. Other Payables

4.

On 4 July 2025, Toodles paid $12,000 in cash for rental relating to the month of August 2025.

Which of the following accounting element increases as a result of this transaction?

a)

Asset

b)

Liabilities

c)

Expense

d)

Revenue

5.

Which of the following best describes the going concern assumption in accounting?

a)

A business will operate only for the current accounting period.

b)

A business is expected to continue its operations into the foreseeable future.

c)

All assets must be recorded at their liquidation value.

d)

A business must prepare financial statements on a cash basis.

6.

A business sold 180 units of a product at a listed price of $12 each. The cost of each unit is $7. A 5% trade discount was given on the total selling price.

Calculate the total amount of trade discount given.

a)

$2,160

b)

$108

c)

$1,260

d)

$63

7.

Potts Pte Ltd uses the FIFO costing method under a Perpetual Inventory System. On selling 100 units of inventory for cash, what journal entries should be recorded?

a)

Dr Cash

Cr Sales Revenue ;

Dr Cost of Goods Sold

Cr Inventory

b)

Dr Cost of Goods Sold Cr Inventory

c)

Dr Accounts Receivable

Cr Sales Revenue;

Dr Inventory

Cr Cost of Goods Sold

d)

Dr Inventory

Cr Cost of Goods Sold

8.

Potts Pte Ltd has an opening inventory of 100 units costing $6 each. Subsequently, it purchased 200 units at $7 each. If Potts sold 180 units at $12 each after the purchase, calculate the cost of goods sold (COGS). [Reminder: Potts uses FIFO costing method]

a)

$2,160

b)

$1,260

c)

$1,160

d)

$1,200