WorksheetsChapter 7 Accruals Prepayment
Total questions: 10
Worksheet time: 11mins
What is the purpose of adjusting entries?
To ensure expenses and revenues are recorded in the correct accounting period
To increase the cash balance
To close the business accounts
To reduce tax liabilities
What must be recorded for expenses incurred but not yet paid?
Revenue receivable
Unearned revenue
Expenses payable
Prepaid expenses
What is the journal entry for recording unpaid salary expenses?
DR Salary Expense, CR Cash
DR Cash, CR Salary Expense
DR Salary Payable, CR Cash
DR Salary Expense, CR Salary Payable
What type of account is 'Rent payable' classified as?
Non current asset
Operating expense
Current asset
Current liability
What is 'Unearned Revenue'?
Revenue received in advance
Revenue earned but not received
Expenses incurred but not paid
Expenses paid in advance
What is prepaid expense?
Business has incurred expense, but has not paid (still owe).
Business has not incurred expense, but has paid.
What is revenue receivable?
Business has earned the income, but has not received the money.
Business has not earned the income, but has received the money.
A cheque of RM10,000 was paid for 10 months' rent. 2 months of rent was outstanding.
Which statement below is correct?
RM2,000 rent payable
RM2,000 prepaid rent
RM2,000 rent expense
RM2,000 uneared rent
Rental expense for the year ended 31 December 2024 is RM12,000. However, RM15,000 was paid. The balance of RM3,000 is known as
Rent expense
Rent payable
Unearned rent
Prepaid rent
For the year ended 31 March 2024, a business received commission revenue of RM3000. Included in the amount was RM200 for April 2024.
What is the commission revenue recorded in the statement of profit or loss for the year ended 31 March 2024?
RM3000
RM3200
RM2800
RM200
