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POA > WA3 > Flashcards

WA3 Flashcards

1
Q

The objectivity theory states that accounting information recorded must be supported by reliable and verifiable evidence so that financial statements will be — — — and biases.

A

free from opinions

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2
Q

The objectivity theory states that accounting information recorded must be supported by reliable and verifiable evidence so that — — will be free from opinions and biases.

A

financial statements

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3
Q

The objectivity theory states that accounting information recorded must be — — reliable and verifiable evidence so that financial statements will be free from opinions and biases.

A

supported by

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4
Q

The objectivity theory states that — — — must be supported by reliable and verifiable evidence so that financial statements will be free from opinions and biases.

A

accounting information recorded

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5
Q

The objectivity theory states that accounting information recorded must be supported by reliable and verifiable evidence so that financial statements will be free from opinions and —.

A

biases

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6
Q

The objectivity theory states that accounting information recorded must be supported by — and verifiable evidence so that financial statements will be free from opinions and biases.

A

reliable

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7
Q

The objectivity theory states that accounting information recorded must be supported by reliable and — — so that financial statements will be free from opinions and biases.

Thus, transactions are recorded based on source documents as they serve as evidence that transactions have occurred.

A

verifiable evidence

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8
Q

The purpose of an invoice is to inform credit customer of amount —.

A

owing

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9
Q

There is invoice only if — purchase/ sale has taken place.

A

credit

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10
Q

If payment is — upon delivery of goods/ provision of service, there will be no invoice.

A

immediate

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11
Q

Debit note

A

To increase amount owing due to undercharge

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12
Q

To increase amount owing due to undercharge

A

Debit note

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13
Q

Invoice

A

To inform credit customer of amount owing

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14
Q

To inform credit customer of amount owing

A

Invoice

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15
Q

The purpose of a credit note is to — amount amount owing by credit customers due to returns or overcharge.

A

reduce

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16
Q

The purpose of a credit note is to reduce amount amount owing by credit customers due to — or overcharge.

A

returns

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17
Q

A — transaction must first have taken place before there can be a credit note.

A

credit

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18
Q

Credit note

A

To reduce amount owing

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19
Q

To inform credit customer of amount owing

A

Invoice

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20
Q

To reduce amount owing

A

Credit note

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20
Q

Debit note

A

To increase amount owing due to undercharge

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21
Q

To increase amount owing due to undercharge

A

Debit note

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22
Q

Invoice

A

To inform credit customer of amount owing

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23
Q

The source document — will always be issued/ received before the source document credit note can be issued/ received.

A

invoice

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24
Q

The source document invoice will always be issued/ received before the source document — can be issued/ received.

A

credit note

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25
Q

The purpose of a credit note is to — amount owing.

A

reduce

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26
Q

Receipt

A

To acknowledge that payment has been received

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27
Q

To acknowledge that payment has been received

A

Receipt

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28
Q

Capital expenditure refers amounts spent to — and bring non-currents to their intended use. Capital expenditure also includes amounts spent to enhance the non-current assets.

A

buy

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29
Q

Capital expenditure refers amounts spent to buy and bring non-currents to their — use. Capital expenditure also includes amounts spent to enhance the non-current assets.

A

intended

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30
Q

Capital expenditure refers amounts spent to buy and bring non-currents to their intended use. Capital expenditure also includes amounts spent to — the non-current assets.

A

enhance

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31
Q

Capital expenditure provide benefits for more than one year while revenue expenditure provide benefits which will be used within one year.

A

True

32
Q

Capital expenditure provide benefits which will be used within one year while revenue expenditure provide benefits for more than one year.

A

False

33
Q

Classify the following payment made by Atif Café. Bought a delivery van to deliver its famous muffins.

A

Capital Expenditure

34
Q

Classify the following payment made by Atif Café. Paid to paint business name and logo on its delivery van.

A

Capital Expenditure

35
Q

Classify the following payment made by Atif Café. Atif Café paid for annual road tax for its delivery van.

A

Revenue Expenditure

35
Q

Classify the following payment made by Atif Café. Atif Café paid for diesel for delivery van.

A

Revenue Expenditure

36
Q

Classify the following payment made by Atif Café. Atif Café paid for annual insurance for its delivery van.

A

Revenue Expenditure

37
Q

Classify the following payment made by Atif Café. Atif Café paid for repairs to the rear view mirror of its delivery van.

A

Revenue Expenditure

38
Q

Classify the following payment made by Atif Café. Atif Café paid for servicing and maintenance of its delivery van.

A

Revenue Expenditure

39
Q

Classify the following payment made by Atif Café. Atif Café paid to upgrade the engine of its delivery van to a more fuel efficient one.

A

Capital Expenditure

40
Q

Classify the following payment made by Atif Café. Atif Café bought a new air-conditioner for its café.

A

Capital Expenditure

41
Q

Classify the following payment made by Atif Café. Atif Café paid for delivery of its new air-conditioner.

A

Capital Expenditure

42
Q

Classify the following payment made by Atif Café. Atif Café paid for installation of new air-conditioner.

A

Capital Expenditure

43
Q

Classify the following payment made by Atif Café. Atif Café paid for electricity to operate the new air-conditioner.

A

Revenue Expenditure

44
Q

Classify the following payment made by Atif Café. Atif Café bought a shop house to open a new café.

A

Capital Expenditure

45
Q

Classify the following payment made by Atif Café. Atif Café paid legal fees to lawyer to process the purchase of the shop house.

A

Capital Expenditure

46
Q

Classify the following payment made by Atif Café. Atif Café paid stamp duty for the purchase of the shop house. Note: Stamp duty is a one-time tax that must be paid to the government when a person/ business buys a property.

A

Capital Expenditure

47
Q

State the accounting concept applied when a low value item that last more than an accounting year is recorded as expense (i.e. recorded as revenue expenditure).

A

Materiality Concept

48
Q

The materiality theory states that a transaction is considered material if it — — — to the decision-making process.

A

makes a difference

49
Q

The materiality theory states that a transaction is considered material if it makes a difference to the — process.

A

decision-making

50
Q

The materiality theory states that a transaction is — — if it makes a difference to the decision-making process.

A

considered material

51
Q

The materiality theory states that a — is considered material if it makes a difference to the decision-making process.

A

transaction

52
Q

Depreciation is the — of cost of a non-current asset over its estimated useful life.

A

allocation

53
Q

Depreciation is the allocation of — of a non-current asset over its estimated useful life.

A

cost

54
Q

Depreciation is the allocation of cost of a — — over its estimated useful life.

A

non-current asset

55
Q

Depreciation is the allocation of cost of a non-current asset over its — — —

A

estimated useful life

56
Q

The four — of depreciation are wear and tear, obsolescence, usage and legal limits.

A

causes

57
Q

The four causes of depreciation are — — —, obsolescence, usage and legal limits.

A

wear and tear

58
Q

The four causes of depreciation are wear and tear, —, usage and legal limits.

A

obsolescence

59
Q

The four causes of depreciation are wear and tear, obsolescence, — and legal limits.

A

usage

60
Q

The four causes of depreciation are wear and tear, obsolescence, usage and — —.

A

legal limits

61
Q

A depreciation method is suitable if the amount of depreciation calculated using that method matches the — — of the non-current asset.

A

usage pattern

62
Q

Accumulated depreciation is an — of the reduction in economic value of a non-current asset.

A

approximation

63
Q

Accumulated depreciation is an approximation of the — — — — of a non-current asset.

A

reduction in economic value

64
Q

Accumulated depreciation is an approximation of the reduction in economic value of a — —.

A

non-current asset

65
Q

Net book value represents the — future economic value of a non-current asset

A

estimated

66
Q

Net book value represents the estimated — — — of a non-current asset

A

future economic value

67
Q

Net book value represents the estimated future economic value of a — —.

A

non-current asset

68
Q

The prudence theory states that the — — — should be the one that least overstates assets and profits and least understates liabilities and losses.

A

accounting treatment chosen

69
Q

The prudence theory states that the accounting treatment chosen should be the one that — — assets and profits and least understates liabilities and losses.

A

least overstates

70
Q

The prudence theory states that the accounting treatment chosen should be the one that least overstates — — — and least understates liabilities and losses.

A

assets and profits

71
Q

The prudence theory states that the accounting treatment chosen should be the one that least overstates assets and profits and — — liabilities and losses.

A

least understates

72
Q

The prudence theory states that the accounting treatment chosen should be the one that least overstates assets and profits and least understates — — —.

A

liabilities and losses

73
Q

The consistency theory states that once a business has chosen an — —, this method should be applied to all future financial periods to enable meaningful comparison of accounting information over time.

A

accounting method

74
Q

The consistency theory states that once a business has chosen an accounting method, this method should be applied to all future financial periods to enable meaningful comparison of accounting information — —.

A

over time

75
Q

The consistency theory states that once a business has chosen an accounting method, this method should be applied to all — financial periods to enable meaningful comparison of accounting information over time.

A

future

76
Q

The consistency theory states that once a business has chosen an accounting method, this method should be applied to all future financial periods to enable — — of accounting information over time.

A

meaningful comparison

77
Q

The — theory states that once a business has chosen an accounting method, this method should be applied to all future financial periods to enable meaningful comparison of accounting information over time.

A

consistency

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