Podcast
Questions and Answers
What does the 'Dr' entry signify in the double entry accounting system?
What does the 'Dr' entry signify in the double entry accounting system?
- Increase in assets (correct)
- Increase in income
- Decrease in expenses
- Increase in liabilities
Which of the following is NOT a step in recording journal entries?
Which of the following is NOT a step in recording journal entries?
- Classify the accounts according to AEDLIC
- Apply AEDLIC for the Dr and Cr entry
- Determine the type of business transaction (correct)
- Identify the accounts affected
How are expenses classified in the double entry rules?
How are expenses classified in the double entry rules?
- Expenses increase with a Dr and decrease with a Cr (correct)
- Income decreases with a Dr and increases with a Cr
- Expenses increase with a Cr and decrease with a Dr
- Liabilities increase with a Dr and decrease with a Cr
In the context of the AEDLIC rule, how is Drawings treated?
In the context of the AEDLIC rule, how is Drawings treated?
What is the primary purpose of a ledger account?
What is the primary purpose of a ledger account?
What is the main purpose of a trade discount?
What is the main purpose of a trade discount?
How is the amount paid calculated after applying a cash discount?
How is the amount paid calculated after applying a cash discount?
In which scenario is a cash discount recorded in the ledger?
In which scenario is a cash discount recorded in the ledger?
Which of the following journal entries represents a payment to credit suppliers?
Which of the following journal entries represents a payment to credit suppliers?
What effect does a trade payable have on liabilities when an inventory purchase is made on credit?
What effect does a trade payable have on liabilities when an inventory purchase is made on credit?
What is a characteristic of a sole proprietorship regarding capital contributions?
What is a characteristic of a sole proprietorship regarding capital contributions?
In which type of business structure is it less likely for banks to lend money?
In which type of business structure is it less likely for banks to lend money?
Which statement is true regarding the liability of partners in an LLP?
Which statement is true regarding the liability of partners in an LLP?
How can a company raise funds compared to an SP?
How can a company raise funds compared to an SP?
What is a benefit of an LLP over an SP in terms of collateral availability?
What is a benefit of an LLP over an SP in terms of collateral availability?
In general, what differentiates the extent of liability in a company compared to an SP?
In general, what differentiates the extent of liability in a company compared to an SP?
What is the primary factor that enables LLPs to secure more funding than SPs?
What is the primary factor that enables LLPs to secure more funding than SPs?
What is an implication of having limited personal assets in a sole proprietorship?
What is an implication of having limited personal assets in a sole proprietorship?
What does integrity in professional ethics specifically require?
What does integrity in professional ethics specifically require?
Which accounting theory dictates that only transactions measurable in monetary terms are recorded?
Which accounting theory dictates that only transactions measurable in monetary terms are recorded?
What is required according to the objectivity theory in accounting?
What is required according to the objectivity theory in accounting?
According to the historical cost theory, how should transactions be recorded?
According to the historical cost theory, how should transactions be recorded?
What does the accounting entity theory state about business transactions?
What does the accounting entity theory state about business transactions?
What assumption does the going concern theory make about the life of a business?
What assumption does the going concern theory make about the life of a business?
Under the accounting period theory, how often are financial statements prepared?
Under the accounting period theory, how often are financial statements prepared?
When is revenue recognized according to accounting principles?
When is revenue recognized according to accounting principles?
What is included in the service fee revenue for a service business?
What is included in the service fee revenue for a service business?
Which of the following items is NOT subtracted in calculating profit for the year?
Which of the following items is NOT subtracted in calculating profit for the year?
How should a loss for the year be presented in the financial statements?
How should a loss for the year be presented in the financial statements?
What is the purpose of the statement of financial position?
What is the purpose of the statement of financial position?
In a service business, what distinguishes the statement of financial performance from a trading business?
In a service business, what distinguishes the statement of financial performance from a trading business?
What does the net claim by the owner on the net assets of the business represent?
What does the net claim by the owner on the net assets of the business represent?
Which of the following is considered other income in the statement of financial performance?
Which of the following is considered other income in the statement of financial performance?
What is the sequence of calculations used to determine the profit for the year?
What is the sequence of calculations used to determine the profit for the year?
What is the primary reason for a business to recognize impairment loss on trade receivables?
What is the primary reason for a business to recognize impairment loss on trade receivables?
What is the impact of the allowance for impairment of trade receivables on financial statements?
What is the impact of the allowance for impairment of trade receivables on financial statements?
If a business estimates that 5% of its trade receivables are uncollectible, how is this amount calculated for the year ended 31 December 2020?
If a business estimates that 5% of its trade receivables are uncollectible, how is this amount calculated for the year ended 31 December 2020?
What should Jerabelle Ltd do when ZhenHong Textile repays only a partial amount of its debt?
What should Jerabelle Ltd do when ZhenHong Textile repays only a partial amount of its debt?
What specific accounting entry is made when a trade receivable is written off due to bankruptcy?
What specific accounting entry is made when a trade receivable is written off due to bankruptcy?
What journal entry would be appropriate for recording the write-off of Erica Crafts' outstanding amount?
What journal entry would be appropriate for recording the write-off of Erica Crafts' outstanding amount?
What would be reflected in the statement of financial performance for Jerabelle Ltd due to impairment loss?
What would be reflected in the statement of financial performance for Jerabelle Ltd due to impairment loss?
Which of the following reflects the proper treatment of trade receivables at year-end regarding uncollectible amounts?
Which of the following reflects the proper treatment of trade receivables at year-end regarding uncollectible amounts?
Flashcards
Single Proprietorship (SP) Ownership
Single Proprietorship (SP) Ownership
Owned and operated by one person, who contributes capital, with total control and liability.
Limited Liability Partnership (LLP) Ownership
Limited Liability Partnership (LLP) Ownership
Owned and operated by two or more partners, each contributing capital, with limited liability for partners.
Company Ownership
Company Ownership
Owned by shareholders, each contributing capital (shares), with limited liability for shareholders.
Single Proprietorship Funding
Single Proprietorship Funding
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Limited Liability Partnership Funding
Limited Liability Partnership Funding
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Company Funding
Company Funding
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Single Proprietorship Liability
Single Proprietorship Liability
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Limited Liability Partnership Liability
Limited Liability Partnership Liability
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Monetary Unit Accounting Theory
Monetary Unit Accounting Theory
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Objectivity Accounting Theory
Objectivity Accounting Theory
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Historical Cost Principle
Historical Cost Principle
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Accounting Entity Theory
Accounting Entity Theory
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Going Concern Assumption
Going Concern Assumption
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Accounting Period Theory
Accounting Period Theory
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Integrity (Professional Ethics)
Integrity (Professional Ethics)
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Objectivity (Professional Ethics)
Objectivity (Professional Ethics)
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Double-entry bookkeeping rule (AEDLIC)
Double-entry bookkeeping rule (AEDLIC)
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Double-entry bookkeeping rule (DEAD COIL)
Double-entry bookkeeping rule (DEAD COIL)
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Journal Entry Steps
Journal Entry Steps
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Ledger Account
Ledger Account
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Debit
Debit
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Trade Discount
Trade Discount
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Cash Discount
Cash Discount
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Trade Payables
Trade Payables
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Inventory Purchase on Credit
Inventory Purchase on Credit
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Goods Return to Credit Supplier
Goods Return to Credit Supplier
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Statement of Financial Performance
Statement of Financial Performance
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Service Revenue
Service Revenue
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Other Income
Other Income
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Other Expenses
Other Expenses
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Profit for the Year
Profit for the Year
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Statement of Financial Position
Statement of Financial Position
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Assets
Assets
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Liabilities
Liabilities
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Prudence Theory
Prudence Theory
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Allowance for Impairment of Trade Receivables
Allowance for Impairment of Trade Receivables
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Impairment Loss
Impairment Loss
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How to determine the impairment loss?
How to determine the impairment loss?
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Impact of Impairment on the Balance Sheet
Impact of Impairment on the Balance Sheet
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Impact of Impairment on the Income Statement
Impact of Impairment on the Income Statement
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Trade Receivables
Trade Receivables
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Journal Entry for Writing Off a Receivable
Journal Entry for Writing Off a Receivable
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Description
Test your knowledge on the double entry accounting system with this quiz. It covers essential concepts such as journal entries, ledger accounts, and different types of discounts. Perfect for students or professionals looking to strengthen their accounting skills.