Prepaid Insurance will be shown in which statement?

Statement of Financial Position.

Statement of Comprehensive Income.

Statement of Changes in Equity.

What is Bank Statement?

A document that contains all the incoming and outgoing transactions; prepared by the bank.

A list of assets, liabilities and equities.

A system which recording financial transactions.

A document that contains all the incoming and outgoing transactions; prepared by the company/depositor.

What is the meaning of ‘NSF’ marked in the cheque returned by the bank to the depositor?

The money in the bank was found to be insufficient to cash the cheque.

The bank could not verify the identity of the cheque.

The cheque is from an illegal activity.

Which items need to be journalized after preparing a Bank Reconciliation?

All items on the bank side of the reconciliation.

All items on the cashbook side of the reconciliation.

All items on the reconciliation.

Which of the following statements is true about Net Accounts Receivable?

It is calculated by subtracting the balance of Allowance for Doubtful Accounts from the balance of Accounts Receivable in the Statement of Financial Position.

It is calculated to prepare Profit or Loss Statement.

It is calculated by subtracting the balance of Bad Debts accounts from the balance of Accounts Receivable on the Statement of Financial Position.

It helps to calculate the non-current assets in the Statement of Financial Position.

Which of the following statements about bad debt is NOT correct?

Bad debts is a liability that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible.

Accounts Receivable that are not collectible after the due date of credit terms.

Record the journal entry by debiting Bad Debt Expense and crediting Allowance for Doubtful Accounts.

A bad debt refers to the Accounts Receivable that has been specifically identified as uncollectible.

Which is CORRECT about the presentation of Accounts Receivable in the Statement of Financial Position?

Accounts Receivable is a non-current asset account shown on the Statement of Financial Position.

Allowance for Doubtful Account is shown as a contra account to Accounts Receivable in the Statement of Financial Position.

Accounts Receivable subtract Allowance for Doubtful Account equals to Net Bad Debt.

What is the primary purpose of a Trial Balance?

To ensure that total debits equal total credits.

To record all financial transactions.

To calculate the net income of a business.

To prepare the Profit and Loss Statement.

What does the term ‘accrual’ refer to in accounting?

Recognizing revenues and expenses when they are earned or incurred, regardless of cash flow.

Recording expenses when cash is paid.

Recording revenues when cash is received.

Adjusting entries made at the end of the accounting period.

‘NSF’ marked in cheque sent back by the bank indicates

A bank couldn’t verify the identity

A cheque cannot be cashed because it’s illegal

The payment terms 2/10, n/30 tell us that:

a 2% discount will be awarded if the payment is made within 10 days of invoice date; otherwise, the full amount is payable within 30 days of invoice date.

a 10% discount will be awarded if the payment is made within 2 days of invoice date; otherwise, the full amount is payable within 30 days of invoice date.

a 2% discount will be awarded if the payment is made within 10 months of invoice date; otherwise, the full amount is payable within 30 months of invoice date.

a 0.5% discount will be awarded if the payment is made within 10 days of invoice date; otherwise, the full amount is payable within 30 days of invoice date.

The direct write-off method of accounting for bad debts

does not require estimates of bad debt losses.

is the preferred method under generally accepted accounting principles.

Two bases for estimating uncollectible accounts are:

percentage of receivables and percentage of sales.

percentage of current assets and percentage of sales.

percentage of assets and percentage of sales.

percentage of receivables and percentage of total revenue.

When an account becomes uncollectible and must be written off,

a customer's account becomes past-due. Accounts Receivable should be credited.

Bad Debt Expense should be credited.

Allowance for Doubtful Accounts should be credited. Incorrect

management estimates the amount of uncollectibles. Sales Revenue should be debited. Correct

Two methods of accounting for uncollectible accounts are the

direct write-off method and the allowance method.

allowance method and the accrual method.

direct write-off method and the accrual method.

allowance method and the net realizable method.

Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is debited

when an account is determined to be uncollectible.

when a credit sale is past due.

at the end of each accounting period.

whenever a pre-determined amount of credit sales have been made.

Which of the following statements is FALSE?

. When total expenses are greater than total revenue, the company get net profit

FOB shipping point is the freight terms indicating that the seller places goods free on board the carrier, and the buyer pays the freight costs.

To find the balance due from an individual customer, the accountant would refer to the accounts receivable subsidiary ledger

Asset, liability, and equity accounts are extended to financial position statement

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

A credit balance in a drawings account

A credit balance in a liabilities account

A credit balance in a capital account

A credit balance in revenue account

PRE UPS 2 (2)

Authored by HAIZAN BM

Education

12th Grade

Used 1+ times

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

32 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which answer choice shows the correct basic sequence in the accounting process?

Transactions, journal entries, ledger accounts, Trial Balance.

Transactions, ledger accounts, journal entries, Trial Balance.

Transactions, journal entries, Trial Balance, ledger accounts.

Transactions, ledger accounts, Trial Balance, journal entries.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the accounting concept related to ‘source documents’?

Historical Cost.

Objectivity.

Consistency.

Revenue Recognition.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Credit Notes issued on previous purchase on account will be recorded in .........

sales ledger.

sales journal.

general journal.

purchase journal.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which transaction will be recorded in the special journal?

Drawings of goods.

Sales of assets on credit.

Purchase of assets on credit.

Sales of goods on credit.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following errors will not affect the Trial Balance?

Error of balancing

Error of principle

Error of casting

Error of carrying forward

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which is NOT TRUE about Cash Basis Accounting?

Records only transactions involving cash.

Revenues are recognized when cash is received.

Expenses are recognized when cash is paid.

Revenue recognition and expense recognition concepts are complied.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of these would likely require adjusting entries?

Expiration of prepaid insurance.

Usage of office supplies.

The accrual of unpaid expenses.

All of these would require adjusting entries.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

30 questions

Indian Judiciary 8A

Quiz

•

KG - Professional Dev...

34 questions

Classroom Rules and Procedures

Quiz

•

7th - 12th Grade

27 questions

Unit 4 Review

Quiz

•

9th - 12th Grade

27 questions

Bible study

Quiz

•

9th - 12th Grade

27 questions

Erasmus + STEAM & Robotics

Quiz

•

1st - 12th Grade

30 questions

Practical Research Q2_M2_Quiz

Quiz

•

12th Grade

28 questions

vegetable and vegetarian dishes Quiz

Quiz

•

12th Grade

28 questions

Ed. 101 Ch. 10 Practice of Teaching

Quiz

•

12th Grade

Popular Resources on Wayground

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

$fractions$

22 questions

fractions

Quiz

•

3rd Grade

20 questions

Main Idea and Details

Quiz

•

5th Grade

20 questions

Context Clues

Quiz

•

6th Grade

15 questions

Equivalent Fractions

Quiz

•

4th Grade

20 questions

Figurative Language Review

Quiz

•

6th Grade

Discover more resources for Education

20 questions

-AR -ER -IR present tense

Quiz

•

10th - 12th Grade

12 questions

Add and Subtract Polynomials

Quiz

•

9th - 12th Grade

13 questions

Model Exponential Growth and Decay Scenarios

Quiz

•

9th - 12th Grade

27 questions

7.2.3 Quadrilateral Properties

Quiz

•

9th - 12th Grade

7 questions

Amoeba Sisters Dihybrid Cross Punnett Square

Interactive video

•

9th - 12th Grade

10 questions

The Holocaust: Historical Overview

Interactive video

•

9th - 12th Grade

10 questions

Key Features of Quadratic Functions

Interactive video

•

8th - 12th Grade

11 questions

Exponent Quotient Rules A1 U7

Quiz

•

9th - 12th Grade

PRE UPS 2 (2)

Which answer choice shows the correct basic sequence in the accounting process?

What is the accounting concept related to ‘source documents’?

Credit Notes issued on previous purchase on account will be recorded in .........

Which transaction will be recorded in the special journal?

Which of the following errors will not affect the Trial Balance?

Which is NOT TRUE about Cash Basis Accounting?

Which of these would likely require adjusting entries?

Prepaid Insurance will be shown in which statement?

What is the normal balance of Cashbook?

What is Bank Statement?

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Education