Question 1

In the expanded version of the accounting equation income and expenses are sub-groupings of:

Accepted Answer

A) assets. 
B) equity. 
C) liabilities. 
D) bank. 
A) assets. 
B) equity. 
C) liabilities. 
D) bank.

Question 2

A two year insurance policy paid for on l January can initially be recorded in an asset account called:

Accepted Answer

A) prepaid insurance. 
B) insurance payable. 
C) unearned insurance. 
D) debtors. 
A) prepaid insurance. 
B) insurance payable. 
C) unearned insurance. 
D) debtors.

Question 3

A regular withdrawal of cash by the owner from the business is treated as a reduction in equity and is recorded in an account called:

Accepted Answer

A) creditors. 
B) debtors. 
C) drawings. 
D) mortgage. 
A) creditors. 
B) debtors. 
C) drawings. 
D) mortgage.

Question 4

The system of accounting where each transaction effects two or more accounts and the sum of the debit entries equals the sum of the credit entries is called:

Accepted Answer

A) single entry accounting. 
B) double-entry accounting. 
C) twin accounting. 
D) debit and credit accounting. 
A) single entry accounting. 
B) double-entry accounting. 
C) twin accounting. 
D) debit and credit accounting.

Question 5

The transactions below are from the records of Templestowe Picture Framers,the internal transaction is:

Accepted Answer

A) cash sale. 
B) paid monthly rent on premises. 
C) credit sale. 
D) recorded depreciation on shop fixtures and fittings. 
A) cash sale. 
B) paid monthly rent on premises. 
C) credit sale. 
D) recorded depreciation on shop fixtures and fittings.

Question 6

In Accounting GST stands for:

Accepted Answer

A) General Service Tax. 
B) Goods and Services Tax. 
C) Government Services Tax. 
D) General and Service Transactions. 
A) General Service Tax. 
B) Goods and Services Tax. 
C) Government Services Tax. 
D) General and Service Transactions.

Question 7

Financial reports prepared between the regular year-end reports are called:

Accepted Answer

A) interim reports. 
B) audited reports. 
C) consolidated reports. 
D) trial balances. 
A) interim reports. 
B) audited reports. 
C) consolidated reports. 
D) trial balances.

Question 8

Which statement relating to a trial balance is incorrect?

Accepted Answer

A) A trial balance may be prepared at any time to test the equality of debits and credits in the ledger. 
B) A trial balance reports the financial position of a business. 
C) The fact that the sum of the debit column equals the sum of the credit column does not guarantee that no errors have been made in the ledger. 
D) A trial balance is a list of all the accounts in the ledger with their current balances. 
A) A trial balance may be prepared at any time to test the equality of debits and credits in the ledger. 
B) A trial balance reports the financial position of a business. 
C) The fact that the sum of the debit column equals the sum of the credit column does not guarantee that no errors have been made in the ledger. 
D) A trial balance is a list of all the accounts in the ledger with their current balances.

Question 9

A listing of the complete ledger account titles and their related numbers is known as a/an:

Accepted Answer

A) general ledger. 
B) master file. 
C) index. 
D) chart of accounts. 
A) general ledger. 
B) master file. 
C) index. 
D) chart of accounts.

Question 10

The double-entry system requires how many of the following to be true?
i.At least one account should be debited and one account credited
ii.Credits should always be entered into the journal before debits
iii.The accounting equation should stay in balance

Accepted Answer

A) 0 
B) 1 
C) 2 
D) 3 
A) 0 
B) 1 
C) 2 
D) 3

Question 11

Which statement relating to the general journal is incorrect?

Accepted Answer

A) The debit and credit effects of each transaction are shown together. 
B) It is compiled using the information taken from the entities general ledger. 
C) It provides a record of transactions in date order. 
D) It is referred to as a book of original entry. 
A) The debit and credit effects of each transaction are shown together. 
B) It is compiled using the information taken from the entities general ledger. 
C) It provides a record of transactions in date order. 
D) It is referred to as a book of original entry.

Question 12

Select the account types for these items:
-Repairs and maintenance
-Accounts receivable
-Drawings
-Wages

Accepted Answer

A) Expense,asset,equity,equity 
B) Asset,liability,equity,equity 
C) Expense,asset,equity,expense 
D) Expense,liability,asset,expense 
A) Expense,asset,equity,equity 
B) Asset,liability,equity,equity 
C) Expense,asset,equity,expense 
D) Expense,liability,asset,expense

Question 13

A chronological record of all the transactions of an entity is provided in the:

Accepted Answer

A) ledger. 
B) journal. 
C) balance sheet. 
D) trial balance. 
A) ledger. 
B) journal. 
C) balance sheet. 
D) trial balance.

Question 14

GST paid by a business on the purchase of its goods and services,and for which a reduction of GST collected will be claimed from the tax department,is stored in an account called:

Accepted Answer

A) GST holdings. 
B) GST collections. 
C) creditable acquisitions. 
D) input credits GST outlays. 
A) GST holdings. 
B) GST collections. 
C) creditable acquisitions. 
D) input credits GST outlays.

Question 15

A party who has provided goods or services to the entity to whom the entity owes money is called a:

Accepted Answer

A) debit. 
B) debtor. 
C) creditor. 
D) credit. 
A) debit. 
B) debtor. 
C) creditor. 
D) credit.

Question 16

The term used in the Framework for the Preparation and Presentation of Financial Statements for income which arises in the course of the ordinary activities of an entity is:

Accepted Answer

A) revenue. 
B) gain. 
C) fees. 
D) profit. 
A) revenue. 
B) gain. 
C) fees. 
D) profit.

Question 17

Select the entry that correctly records the purchase by Speedy Window Cleaning of 15 months worth of cleaning supplies from Southern Cleaning.The purchase is for cash and the invoiced amount is $1500.Ignore GST.

Accepted Answer

A) Debit cleaning supplies expense $1500; credit equity $1500 
B) Debit bank $1500; credit cleaning supplies asset $1500 
C) Debit cleaning supplies asset $1500; credit bank $1500 
D) Debit bank $1500; credit cleaning supplies expense $1500 
A) Debit cleaning supplies expense $1500; credit equity $1500 
B) Debit bank $1500; credit cleaning supplies asset $1500 
C) Debit cleaning supplies asset $1500; credit bank $1500 
D) Debit bank $1500; credit cleaning supplies expense $1500

Question 18

Quinn paid $440,including GST,for advertising.The entry to record this transaction is which of the following?

Accepted Answer

A) DR Advertising $440; CR Cash $440 
B) DR Advertising $440,DR GST outlays $44; CR Cash $484 
C) DR Advertising $440; CR GST outlays $40,CR Cash $400 
D) DR Advertising $400,DR GST outlays $40; CR Cash $440 
A) DR Advertising $440; CR Cash $440 
B) DR Advertising $440,DR GST outlays $44; CR Cash $484 
C) DR Advertising $440; CR GST outlays $40,CR Cash $400 
D) DR Advertising $400,DR GST outlays $40; CR Cash $440

Question 19

Entries are made in the ledger

Accepted Answer

A) 2,4,1,3 
B) 2,1,4,3 
C) 3,2,1,4 
D) 2,4,3,1 
A) 2,4,1,3 
B) 2,1,4,3 
C) 3,2,1,4 
D) 2,4,3,1

Question 20

On 20 June Yin repaired Yan's computer and charged her $660 cash including GST.The general journal entry to record the transaction is:
$ $
DR CR

Accepted Answer

A) Cash at bank 660 GST collections 60
Income from repairs 600 
B) Cash at bank 600 GST collections 60
Income from repairs 660 
C) Cash at bank 660 GST outlays 60
Income from repairs 600 
D) None of the above 
A) Cash at bank 660 GST collections 60
Income from repairs 600 
B) Cash at bank 600 GST collections 60
Income from repairs 660 
C) Cash at bank 660 GST outlays 60
Income from repairs 600 
D) None of the above

In the expanded version of the accounting equation income and expenses are sub-groupings of:

A two year insurance policy paid for on l January can initially be recorded in an asset account called:

A regular withdrawal of cash by the owner from the business is treated as a reduction in equity and is recorded in an account called:

The system of accounting where each transaction effects two or more accounts and the sum of the debit entries equals the sum of the credit entries is called:

The transactions below are from the records of Templestowe Picture Framers,the internal transaction is:

In Accounting GST stands for:

Financial reports prepared between the regular year-end reports are called:

Which statement relating to a trial balance is incorrect?

A listing of the complete ledger account titles and their related numbers is known as a/an:

The double-entry system requires how many of the following to be true? i.At least one account should be debited and one account credited ii.Credits should always be entered into the journal before debits iii.The accounting equation should stay in balance

Which statement relating to the general journal is incorrect?

Select the account types for these items: -Repairs and maintenance -Accounts receivable -Drawings -Wages

A chronological record of all the transactions of an entity is provided in the:

GST paid by a business on the purchase of its goods and services,and for which a reduction of GST collected will be claimed from the tax department,is stored in an account called:

A party who has provided goods or services to the entity to whom the entity owes money is called a:

The term used in the Framework for the Preparation and Presentation of Financial Statements for income which arises in the course of the ordinary activities of an entity is:

Select the entry that correctly records the purchase by Speedy Window Cleaning of 15 months worth of cleaning supplies from Southern Cleaning.The purchase is for cash and the invoiced amount is $1500.Ignore GST.

Quinn paid $440,including GST,for advertising.The entry to record this transaction is which of the following?

Entries are made in the ledger

On 20 June Yin repaired Yan's computer and charged her $660 cash including GST.The general journal entry to record the transaction is: $ $ DR CR

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters

Exam 3: Recording Transactions

In the expanded version of the accounting equation income and expenses are sub-groupings of:

A two year insurance policy paid for on l January can initially be recorded in an asset account called:

A regular withdrawal of cash by the owner from the business is treated as a reduction in equity and is recorded in an account called:

The system of accounting where each transaction effects two or more accounts and the sum of the debit entries equals the sum of the credit entries is called:

The transactions below are from the records of Templestowe Picture Framers,the internal transaction is:

In Accounting GST stands for:

Financial reports prepared between the regular year-end reports are called:

Which statement relating to a trial balance is incorrect?

A listing of the complete ledger account titles and their related numbers is known as a/an:

The double-entry system requires how many of the following to be true? i.At least one account should be debited and one account credited ii.Credits should always be entered into the journal before debits iii.The accounting equation should stay in balance

Which statement relating to the general journal is incorrect?

Select the account types for these items: -Repairs and maintenance -Accounts receivable -Drawings -Wages

A chronological record of all the transactions of an entity is provided in the:

GST paid by a business on the purchase of its goods and services,and for which a reduction of GST collected will be claimed from the tax department,is stored in an account called:

A party who has provided goods or services to the entity to whom the entity owes money is called a:

The term used in the Framework for the Preparation and Presentation of Financial Statements for income which arises in the course of the ordinary activities of an entity is:

Select the entry that correctly records the purchase by Speedy Window Cleaning of 15 months worth of cleaning supplies from Southern Cleaning.The purchase is for cash and the invoiced amount is $1500.Ignore GST.

Quinn paid $440,including GST,for advertising.The entry to record this transaction is which of the following?

Entries are made in the ledger

On 20 June Yin repaired Yan's computer and charged her $660 cash including GST.The general journal entry to record the transaction is: $ $ DR CR

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters