FAPS Recap sessions 1 to 3

Where would you find the profit on the disposal of an asset?

• Debit side of the profit and loss

• Cr Side of the statement of financial position

• Cr side of the profit and loss

• Dr side of the statement of financial position

When checking his electricity bill Devon has discovered he has only paid up until October 2019. A bill promptly arrives on the 10th February for the quarter ending January 2020 for £195. His year end is December 2019 what is the adjustment?

• Accrue for £195

• Prepaid £65

• Accrue for £130

• Prepaid £195

Which of these is not a method of depreciation?

• Straight line

• Accruals

• Reducing balance

• Units of production

Depreciation is an application of which concept?

• Accruals

• Materiality

• Going concern

When preparing the Profit and loss columns of the etb the expenses are higher than the income this means?

• We have made a loss

• We have made a profit

What is the correct accounting entry for depreciation?

• Dr Accumulated Depreciation and CR Depreciation Expense

• CR Asset Account and DR Bank

• DR Disposal CR Deprecation Charge

• DR Deprecation Charge and CR Accumulated Depreciation