11 markeasy
What is not a service business?
Choose your answer
an accounting firm
a taxi driver
a cleaning business
a grocery store
Accounting — 2021 Syllabus
15 questions · 15 marks · ≈ 15 min
What is not a service business?
Choose your answer
an accounting firm
a taxi driver
a cleaning business
a grocery store
Which statements about a statement of financial position are correct?
Choose your answer
1 only
1 and 4 only
2 and 3
1, 3 and 4
Which statement will show the operating costs for the year?
Choose your answer
income statement
statement of financial position
bank reconciliation statement
statement of changes in equity
Which group contains only trading businesses?
Choose your answer
accounting firm, taxi firm, hair salon
grocery store, hardware store, book shop
grocery store, taxi firm, book shop
accounting firm, hardware store, hair salon
What does the income statement of a business show?
Choose your answer
calculation of the profit or loss for a period of time
assets and liabilities at a certain date
the capital receipts and capital expenditure for a period of time
the changes in the equity structure over a period of time
Which items would appear in the income statement of a service business?
| gross profit | profit for the year | |
|---|---|---|
| A | ✘ | ✘ |
| B | ✓ | ✘ |
| C | ✘ | ✓ |
| D | ✓ | ✓ |
Choose your answer
Which of the following gives the cost of sales?
Choose your answer
opening inventory + purchases + carriage inwards - closing inventory
opening inventory + purchases - carriage inwards - closing inventory
purchases - opening inventory + carriage inwards + closing inventory
purchases - opening inventory - carriage inwards + closing inventory
Which group does not contain an intangible asset?
Choose your answer
vehicles, bank balance, goodwill
brand names, trade payables, inventory
trade receivables, trademarks, bank overdraft
bank loan, cash in hand, machinery
At the end of the financial year, Khloe decided to decrease her provision for doubtful debts.
How will this affect her income statement and the statement of financial position?
| income statement | statement of financial position | |
|---|---|---|
| A | increase profit for the year | increase current assets |
| B | increase profit for the year | decrease current assets |
| C | decrease profit for the year | increase current assets |
| D | decrease profit for the year | decrease current assets |
Choose your answer
Jamelia runs a service business. She provided the following information at the end of the year.
| $ | |
|---|---|
| equipment | 20 000 |
| trade receivables | 600 |
| trade payables | 900 |
| capital | 18 000 |
What was the bank balance in Jamelia's cash book at the end of the year?
Choose your answer
$1 700 debit
$1 700 credit
$3 500 debit
$3 500 debit
Amy started a taxi business. She provided the following information at the end of her first financial year.
| $ | |
|---|---|
| fees receivable from customers | 17 500 |
| motor expenses | 5 300 |
| vehicles | 20 000 |
| drawings | 3 000 |
| bank | 2 700 |
Amy bought her vehicle at the start of the year. Amy depreciates motor vehicles at 20% per annum using the reducing balance method. Amy charges depreciation in the year of purchase.
What was her profit or loss for the year?
Choose your answer
$7 900 profit
$8 200 profit
$12 200 profit
$11 800 loss
A trader provided the following information for his financial year.
| $ | |
|---|---|
| total purchases | 30 540 |
| carriage inwards | 895 |
| purchases returns | 2 075 |
| goods taken for own use | 3 560 |
What was the net figure for purchases in the income statement?
Choose your answer
$24 905
$25 800
$28 465
$29 360
Naomi is a sole trader. On her financial statements, the profit for the year was $15 000 and her capital at the end of the year was $30 000.
During the year, Naomi took $1 000 worth of goods for her own use and forgot to make entries in the accounts.
What is the revised profit for the year and capital after the relevant entries were made.
| profit for the year | capital | |
|---|---|---|
| A | $14 000 | $29 000 |
| B | $14 000 | $30 000 |
| C | $16 000 | $30 000 |
| D | $16 000 | $31 000 |
Choose your answer
Karina calculated her profit for the year at $18 400. The following errors were then discovered.
What is the correct profit for the year?
Choose your answer
$17 750
$18 050
$18 750
$19 050
After the preparation of his income statement, Ruben discovered the following errors.
The draft profit for the year was $41 600.
What was the corrected profit for the year?
Choose your answer
$38 300
$39 900
$43 300
$44 900