Chapter 14,15,16

Question 1

Plus in I/S is? (SOFPE)

Answer 1

Other payables

Question 2

Minus in I/S is (SOFPE)

Answer 2

Other receivables

Question 3

Accrued can be worded as …

Answer 3

Accrual/outstanding/due but unpaid

Question 4

Paid in advance can be worded as …

Answer 4

Prepaid/for the next year

Question 5

Prepaid expenses at the start… and at the end…

Answer 5

+, -

Question 6

Accrued expense at the start … and at the end…

Answer 6

-, +

Question 7

Bought at 17 november ends at 31 december…

Answer 7

31-17 = 14 = round down a month

Question 8

Bought at 14 November ends at 31 December

Answer 8

31-14 = 17 = round up a month

Question 9

Straight line method :
Reducing balance method :
Revaluation method :

Answer 9

Same amount of depreciation each year (12k, whole year)

Depreciation rate is multiplied by the NBV (12k,10k,8k)

Beginning value + Purchases that financial year - ending value = depreciation charge.

Question 10

Examples of straight line method :

Answer 10

Office buildings, machine equipment, some vehicles

Question 11

Example of reducing balance :

Answer 11

Office printer, Car, motorcycle

Question 12

Examples of revaluation

Answer 12

Crockery, stapler.

Question 13

What is the prudence principle

Answer 13

This rule requires all businesses to ensure that users of their accounts are not misled into thinking that assets and profits have greater value than is realistic

Question 14

Accrual principle

Answer 14

in order to calculate a true and fair profit, income for a financial year is matched exactly with expenses that relate to that accounting year whether paid or not. This principle is also called the matching principle.