Accounting Recap of content

The purpose of accounting is to keep accounting records for (a)   use.

• internal
• external

Management accounting uses quantitative and qualitative information.

• True

• False

Reorder the Financial Accounting System

• Source documents

• Subsidiary books/day books

• Double entry book keeping

• Trial balance

• Final Accounts

What are the two final accounts prepared in the financial accounting system?

Answer explanation

Trading profit and loss account

Statement of financial position

Match the double entry

• entered on the credit side

• Discount allowed is

• entered on the debit side

• Decrease in income is

• an expense and is a debit entry

• Purchases are

• carried forward on the credit side

• An accrual is

• an expense

• Increase in liabilities are

The sales for the year ended is £3890, stock as at 1 Jan 2024 is £360, purchases is £2300, stock at 31 Dec is £470. What is the gross profit?

Mathematical Equivalence

ON

The bank overdraft carried forward is entered on the ------ side of the T account.

A prepayment appears as a current​ (a)   in the SOFP.

• asset
• liability

Organize these options into the right categories

Groups:

(a) Income statement

,

(b) SOFP

• Fixture and fittings

• Purchases

• Discount Received

• Loan

• Depreciation

• Trade receivables

• Drawings

• Discount Allowed

The business paid £5000 rent for a year starting from 1st April. The business year end is on 31st Dec. What is the rent prepayment?

Mathematical Equivalence

ON