Reminders Flashcards
Do you record purchases in the non-current assets?
No
Are stationeries assets or expenses?
Expenses
Are furniture and fittings assets or expenses?
Assets
Loan interest, whether paid or unpaid, is an _________ in the profit or loss statement. It is not a liability because it is already paid for in the trial balance. ___________________________ if it is specified to be unpaid.
expense; it is only a liability
Owed amounts for an asset increase the _________________ in the income statement and are under the _____________________________ in SoFP.
value/expense value of that asset; current liabilities
4 typical kinds of current assets
Trade receivables, bank balance, prepayments, and closing inventories
An expense’s value reduces in the _______________________ when it is specified that a portion has been prepaid. The prepaid portion Is recorded as ____________ under the current assets in the statement of financial position.
statement of profit or loss; prepayments
Bad debts are not __________, they are expenses in the SoPoL. They reduce the value of ___________ in ___________.
liabilities; trade receivables, SoFP
Reducing balance additions are _________ sensitive. First take the asset, reduce it by the recorded ________________ in the trial balance, and then apply the reducing balance dep’n expense %
NBV, acc.depn in the trial balance.
Total provision for doubtful debts IN A FOLLOWING YEAR formula
Current year’s provision for doubtful debt - previous year’s provision for doubtful debts (BECAUSE THERE WAS PROVISION ALREADY A YEAR BEFORE!)
Bad debts and provision for doubtful debts reduce the value of _________________ in the statement of financial position.
trade receivables
How do you account for accruals?
As expense in SoPoL; as current liability in SoFP
