Quiz on GST and Financial Concepts

What is GST Receivable?

• GST paid and incurred is more than GST received and earned

• GST received and earned is more than GST paid and incurred

• GST paid and incurred is equal to GST received and earned

• None of the above

Why is depreciation not verifiable?

• It is based on historical cost

• It is based on estimated values

• It is calculated annually

• It is recorded in the balance sheet

What causes an increase in Bank yet a lower Net Profit?

• Receipts from Accounts Receivable increase cash more than the corresponding Credit Sales increase revenue

• Payments to Accounts Payable decrease cash more than the corresponding Credit Purchases decrease expenses

• Cash sales are higher than credit sales

• Cash purchases are lower than credit purchases

What is an asset register?

• A record of the current liabilities a business holds

• A record of the non-current assets a business holds

• A record of the equity a business holds

• A record of the revenue a business earns

What is a depreciable asset?

• Assets that have an infinite life

• Assets that have a finite life

• Assets that do not depreciate

• Assets that increase in value over time

What is the straight line method of depreciation?

• The non-current asset will depreciate evenly to earning revenue over its life

• The non-current asset will depreciate unevenly over its life

• The non-current asset will not depreciate

• The non-current asset will appreciate over its life

What is an intangible asset?

• A physical asset

• A non-physical asset

• A current asset

• A liability

What is discount expense?

What is the difference between cash and profit?

• Cash is found by deducting cash inflows from cash outflows whereas net profit is found by deducting revenue earned from expenses incurred

• Cash is found by adding cash inflows to cash outflows whereas net profit is found by adding revenue earned to expenses incurred

• Cash is found by deducting revenue earned from expenses incurred whereas net profit is found by deducting cash inflows from cash outflows

• Cash is found by adding revenue earned to expenses incurred whereas net profit is found by adding cash inflows to cash outflows

What are the benchmarks?

• Budgeted, Industry Averages, Past Performance

• Budgeted, Industry Averages, Future Performance

• Budgeted, Current Performance, Past Performance

• Budgeted, Future Performance, Past Performance