General Quiz 29May

In the SoFP which is not a current asset?

• Trade and other Receivables

• Cash and Cash equivilants

• Property, Plant and equiptment

Periodic inventory system is more accurate than Perpetual inventory system?

• True

• False

Answer explanation

Perpetual is more accurate as everytime inventory is purchased/Sold it will be accounted for in the inventory account in general ledger.

Creditor reconciliation:

If the error is on the creditor statement where will the error be rectified?

• General ledger account

• Credit Sales Journal

• Creditors reconciliation

• Bank statement

Bank Reconciliation:

If the error is in the general ledger where will the error be rectified?

• Bank Statement

• Bank reconciliation

• Bank account

• Debtors account

Allowance for settlement discount is:

• Receiving/giving discount for paying cash

• Receiving discount for buying on credit

• Giving discount for buying on credit

• Receiving/Giving discount for settling account within a certain period

Accumulated depreciation means;

• Total depreciation for the year

• Total reamaining depreciation left to depreciate

• Total depreciation over the period the asset has been used

• CA+depreciation over useful life

Diminishing-value method can also be identified as reducing balance method?

• True

• False

I cannot calculate depreciation using straight-line method without my cost price?

• True

• False

Answer explanation

I can calculate depreciation without cost price by:

Carry amount-residual value/remaing useful life

Residual vale will be deducted when using all depreciation methods?

• True

• False

In the PPE note disposals are accounted for at;

• Cost price

• Accumulated depreciation

• Depreciation

• Carry Amount