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WorksheetsPRE UPS 2 (1) -AA015
Total questions: 40
Worksheet time: 20mins
What is the sequence in recording transaction?
Journalise > analyse > ledger.
Analyse > journalise > ledger.
Journalise > ledger > analyse.
Ledger > journalise > analyse.
What is the function of an invoice?
Used in credit transaction.
Evidence to prove payment.
Evidence that payments have been made.
Used to record any kind of payment.
Which transaction will be recorded in the Special Journal?
Sale of assets on credit.
Drawings of merchandise.
Purchase of assets on credit.
Sale of merchandise on credit.
“Sold merchandise on account to Arif Enterprise RM10,400, terms 2/10, n/30”. Based on transaction above, the terms 2/10 refer to
2% discount.
2% cash discount.
2% trade discount.
2% commission discount.
The following are statement about the Trial Balance except
total debit and credit balances must be equal.
prepare after financial statements are completed.
list of accounts and their balances at the given time.
debit balance in the left column and credit balance in the right column.
The following are statement about accrual basis except
expenses are recognised when incurred.
revenues are recognised when services are performed.
revenue recognition and expense recognition principles complied.
revenue recognition and expense recognition principles are not complied.
When are adjusting entries prepared?
During the accounting period.
Ending of the accounting period.
Beginning of the accounting period.
During the process of analyzing source documents.
Unearned Service Revenues are
revenues are already performed and cash received.
revenues not already performed but cash received.
revenues are already performed and recorded as liabilities.
revenues are already performed but not yet received in cash.
Expense incurred but not yet paid or recorded are called
Prepaid Expense.
Accrued Expense.
Unearned Expense.
Adjustment Expense.
Utility payable will be shown in which statement?
Statement of Cash Flow.
Statement of Financial Position.
Statement of Changes in Equity.
Statement of Comprehensive Income.
What is the normal balance of a Bank Statement?
Debit balance.
Credit balance.
Adjusted balance.
Overdraf balance.
Which of the following would be added to the balance per Bank Statement in the Bank Reconciliation?
Credit transfer.
Deposit in transit.
Outstanding cheque.
Bank service charge.
“Cheques returned unpaid after presentation at the bank on which it was drawn”. The statement refers to
cleared cheque.
outstanding cheque.
unpresented cheque.
dishonoured cheque.
All the following are reasons for uncollectible Accounts Receivable, except
insane.
penalty.
bankruptcy.
untraceable.
Which account should be debited to record bad debt write-off using Direct Write-off Method?
Bad Debts Expenses.
Bad Debts Write-off Expenses.
Allowance for Doubtful Accounts.
Allowance for Write-off Accounts.
Which of the following source documents should be issued by the seller upon the return of defected goods by the customer?
Debit note.
Receipt.
Credit note.
Invoice.
The first step in the recording process is to: -
prepare Financial Statements.
analyse each transaction for its effect on the accounts.
post to a journal.
prepare a Trial Balance.
Which of the following statements is incorrect regarding Purchases Journal?
It shows the subsidiary of Accounts Payable.
It provides the account balance.
Each entry should begin with transaction date.
It shows the total of purchases at the end period.
Which of the following statements is incorrect?
Purchase discounts is a cash discount claimed by buyer for prompt payment.
Purchase returns is a document that supports each credit purchase.
Sales invoice is a document that supports each credit sales.
FOB shipping point is freight terms indicating that the seller places goods free on board the carrier, and the buyer pays the freight costs.
The steps in preparing a Trial Balance include all of the following; except
listing the account titles and their balances.
totalling the debit and credit columns.
proving the equality of two columns.
transferring journal amounts to ledger accounts.
Under the accrual basis of accounting; revenues are reported in the accounting period when the
cash received from the customer.
end of the month or year.
expenses are greater than revenues.
service or goods have been delivered.
Which is the correct adjustment entry to record depreciation expense at the end of the accounting period?
DEBIT to depreciation expense, CREDIT to cash
DEBIT to accumulated depreciation, CREDIT to expense depreciation
DEBIT to depreciation expense, CREDIT to accumulated depreciation
DEBIT to accumulated depreciation, CREDIT to cash
Accrued expenses are a
non-current liability.
current liability.
non-current asset.
current asset.
Bank Reconciliation statement compares a Bank Statement with
a Cash Payment Journal.
a Cash Receipt Journal.
a Financial Statements.
a Cash Book.
A Bank Statement
allows a depositor to know the financial position of the bank as of a certain date.
is a credit reference letter written by the depositor's bank.
is a bill from the bank for services rendered.
shows the activity which increased or decreased the depositor's account balance.
After preparing a Bank Reconciliation, we need to journalize
all items on the bank side of the reconciliation.
all items on the cash book side of the reconciliation.
all items on the reconciliation.
no items from the reconciliation because the cash transaction needs no adjustments
On a Bank Reconciliation; deposits in transit are
added to the bank balance.
deducted from the bank balance.
added to the book balance.
deducted from the book balance.
In preparing a Bank Reconciliation, outstanding cheques are
added to the balance per bank.
deducted from the balance per book.
added to the balance per book.
deducted from the balance per bank.
Which of the following source documents should be issued by the seller upon the return of defected goods by the customer?
Debit note.
Receipt.
Credit note.
Invoice.
The first step in the recording process is to: -
prepare Financial Statements.
analyse each transaction for its effect on the accounts.
post to a journal.
prepare a Trial Balance.
Which of the following statements is incorrect regarding Purchases Journal?
It shows the subsidiary of Accounts Payable.
It provides the account balance.
Each entry should begin with transaction date.
It shows the total of purchases at the end period.
Which of the following statements is incorrect?
Purchase discounts is a cash discount claimed by buyer for prompt payment.
Purchase returns is a document that supports each credit purchase.
Sales invoice is a document that supports each credit sales.
FOB shipping point is freight terms indicating that the seller places goods free on board the carrier, and the buyer pays the freight costs.
The steps in preparing a Trial Balance include all of the following; except
listing the account titles and their balances.
totalling the debit and credit columns.
proving the equality of two columns.
transferring journal amounts to ledger accounts.
Under the accrual basis of accounting; revenues are reported in the accounting period when the
cash received from the customer.
end of the month or year.
expenses are greater than revenues.
service or goods have been delivered.
Which is the correct adjustment entry to record depreciation expense at the end of the accounting period?
DEBIT to depreciation expense, CREDIT to cash
DEBIT to accumulated depreciation, CREDIT to expense depreciation
DEBIT to depreciation expense, CREDIT to accumulated depreciation
DEBIT to accumulated depreciation, CREDIT to cash
Accrued expenses are a
non-current liability.
current liability.
non-current asset.
current asset.
Bank Reconciliation statement compares a Bank Statement with
a Cash Payment Journal.
a Cash Receipt Journal.
a Financial Statements.
a Cash Book.
A Bank Statement
allows a depositor to know the financial position of the bank as of a certain date.
is a credit reference letter written by the depositor's bank.
is a bill from the bank for services rendered.
shows the activity which increased or decreased the depositor's account balance.
After preparing a Bank Reconciliation, we need to journalize
all items on the bank side of the reconciliation.
all items on the cash book side of the reconciliation.
all items on the reconciliation.
no items from the reconciliation because the cash transaction needs no adjustments
In preparing a Bank Reconciliation, outstanding cheques are
added to the balance per bank.
deducted from the balance per book.
added to the balance per book.
deducted from the balance per bank.
