6 Questions
What is the difference between Accrued Expense and Prepaid Expense?
Accrued Expense is an expense owing by the business to other parties, while Prepaid Expense is an expense paid in advance to a business.
Define Work in Progress.
Work in Progress refers to semi-finished products.
Explain the concept of Indirect Costs/Factory Overheads.
Indirect Costs/Factory Overheads are costs that cannot be directly traced to items being manufactured.
What is the purpose of a Suspense Account?
A Suspense Account is a temporary account used to balance the trial balance until errors are found and corrected.
Differentiate between Allocation and Apportionment of expenses.
Allocation is when an expense is allocated to one specific department only, while Apportionment is when an expense is divided between departments according to a specific criteria.
Explain the concept of Partnership.
Partnership is when 2 or more persons carry on business in common with a view of profit.
Test your knowledge of accounting terminologies such as accrued expense, prepaid income, manufacturing account, and more. Learn about different types of expenses, incomes, and accounts in the field of accounting.
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