Exam 6: Statement of Profit or Loss and Statement of Changes in Equity

Office supplies are purchased in bulk and recorded as an asset.They are used by staff on a daily basis.An expense recognising the use of the office supplies will normally be recorded:

(Multiple Choice)

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Question 21

Which of these would not be recorded as increasing income on 13 January?

(Multiple Choice)

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Question 22

If the beginning balance of equity is $82 000,the ending balance is $37 000,and the loss for the period is $33 000,how much did the owner withdraw during the period for personal use?

(Multiple Choice)

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Question 23

Two expenses that are recognised under accrual accounting but which do not involve any cash flows _ and _.

(Short Answer)

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Question 24

For a business selling magazine subscriptions and preparing financial reports on a monthly basis,when should it recognise the revenue from the sale of annual subscriptions?

(Multiple Choice)

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Question 25

For the financial year ending 30 June,Sunset Ltd had a beginning balance for equity of $180 000 and an ending balance of $175 000.During the year the owner withdrew $120 000 for private use.How much profit did Sunset Ltd earn during the year?

(Multiple Choice)

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Question 26

For a retail entity,cost of sales is calculated as follows:

(Multiple Choice)

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Question 27

An entity's financial year ends on 30 June.On 1 May it pays a 12-month insurance premium of $24 000.Under the accrual system of accounting how much of the premium will be recognised as an expense for the current year ended 30 June and how much will be treated as an asset (prepaid insurance)?

(Multiple Choice)

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Question 28

Machinery is purchased for $80 000.It is estimated that it has a useful life of 5 years and a residual value of $5 000.Using the straight-line method,the carrying value of the machine at the end of the fourth year of the machine's useful life is:

(Multiple Choice)

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Question 29

If sales revenue is $600 000 and cost of sales is $450 000,the gross profit margin is:

(Multiple Choice)

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Question 30

Machinery is purchased for $140 000.It is estimated that it has a useful life of 5 years and a residual value of $20 000.Using the straight-line method,the balance in the accumulated depreciation account at the end of the third year of the machine's useful life is:

(Multiple Choice)

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Question 31

For the month of October: total sales = $125 000,total purchases = $80 000,beginning inventory = $32 000 and ending inventory = $44 000.The cost of sales for October is:

(Multiple Choice)

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Question 32

Which of the following expenses must be disclosed by a reporting entity?

(Multiple Choice)

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Question 33

Auto Care Ltd serviced a motor vehicle on 30 April and issued the invoice to the owner when the motor vehicle was picked up at the end of the day.The owner sends a cheque to Auto Care Ltd on 2 May which is received and banked by Auto Care Ltd on 6 May.Auto Care Ltd will recognise income on:

(Multiple Choice)

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Question 34

A statement of changes in equity shows closing capital as:

(Multiple Choice)

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Question 35

Machinery is purchased for $140 000.It is estimated that it has a useful life of 5 years and a residual value of $20 000.Using the straight-line method,calculate the amount of annual depreciation to be charged.

(Multiple Choice)

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Question 36

Triple bottom line reporting is when entities report on their:

(Multiple Choice)

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Question 37

The main expense incurred by a retail business is of .

(Short Answer)

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Question 38

For a retailing or manufacturing entity,gross profit is equal to sales less:

(Multiple Choice)

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Question 39

The statement of profit or loss is normally completed:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 62

Office supplies are purchased in bulk and recorded as an asset.They are used by staff on a daily basis.An expense recognising the use of the office supplies will normally be recorded:

Which of these would not be recorded as increasing income on 13 January?

If the beginning balance of equity is $82 000,the ending balance is $37 000,and the loss for the period is $33 000,how much did the owner withdraw during the period for personal use?

Two expenses that are recognised under accrual accounting but which do not involve any cash flows _ and _.

For a business selling magazine subscriptions and preparing financial reports on a monthly basis,when should it recognise the revenue from the sale of annual subscriptions?

For the financial year ending 30 June,Sunset Ltd had a beginning balance for equity of $180 000 and an ending balance of $175 000.During the year the owner withdrew $120 000 for private use.How much profit did Sunset Ltd earn during the year?

For a retail entity,cost of sales is calculated as follows:

An entity's financial year ends on 30 June.On 1 May it pays a 12-month insurance premium of $24 000.Under the accrual system of accounting how much of the premium will be recognised as an expense for the current year ended 30 June and how much will be treated as an asset (prepaid insurance)?

Machinery is purchased for $80 000.It is estimated that it has a useful life of 5 years and a residual value of $5 000.Using the straight-line method,the carrying value of the machine at the end of the fourth year of the machine's useful life is:

If sales revenue is $600 000 and cost of sales is $450 000,the gross profit margin is:

Machinery is purchased for $140 000.It is estimated that it has a useful life of 5 years and a residual value of $20 000.Using the straight-line method,the balance in the accumulated depreciation account at the end of the third year of the machine's useful life is:

For the month of October: total sales = $125 000,total purchases = $80 000,beginning inventory = $32 000 and ending inventory = $44 000.The cost of sales for October is:

Which of the following expenses must be disclosed by a reporting entity?

Auto Care Ltd serviced a motor vehicle on 30 April and issued the invoice to the owner when the motor vehicle was picked up at the end of the day.The owner sends a cheque to Auto Care Ltd on 2 May which is received and banked by Auto Care Ltd on 6 May.Auto Care Ltd will recognise income on:

A statement of changes in equity shows closing capital as:

Machinery is purchased for $140 000.It is estimated that it has a useful life of 5 years and a residual value of $20 000.Using the straight-line method,calculate the amount of annual depreciation to be charged.

Triple bottom line reporting is when entities report on their:

The main expense incurred by a retail business is of .

For a retailing or manufacturing entity,gross profit is equal to sales less:

The statement of profit or loss is normally completed:

Introduction to Accounting and Business Decision Making

Accounting in Society

Business Structures

Business Transactions

Balance Sheet

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Costvolumeprofit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters

Exam 6: Statement of Profit or Loss and Statement of Changes in Equity

Office supplies are purchased in bulk and recorded as an asset.They are used by staff on a daily basis.An expense recognising the use of the office supplies will normally be recorded:

Which of these would not be recorded as increasing income on 13 January?

If the beginning balance of equity is $82 000,the ending balance is $37 000,and the loss for the period is $33 000,how much did the owner withdraw during the period for personal use?

Two expenses that are recognised under accrual accounting but which do not involve any cash flows _________ and _________.

For a business selling magazine subscriptions and preparing financial reports on a monthly basis,when should it recognise the revenue from the sale of annual subscriptions?

For the financial year ending 30 June,Sunset Ltd had a beginning balance for equity of $180 000 and an ending balance of $175 000.During the year the owner withdrew $120 000 for private use.How much profit did Sunset Ltd earn during the year?

For a retail entity,cost of sales is calculated as follows:

An entity's financial year ends on 30 June.On 1 May it pays a 12-month insurance premium of $24 000.Under the accrual system of accounting how much of the premium will be recognised as an expense for the current year ended 30 June and how much will be treated as an asset (prepaid insurance)?

Machinery is purchased for $80 000.It is estimated that it has a useful life of 5 years and a residual value of $5 000.Using the straight-line method,the carrying value of the machine at the end of the fourth year of the machine's useful life is:

If sales revenue is $600 000 and cost of sales is $450 000,the gross profit margin is:

Machinery is purchased for $140 000.It is estimated that it has a useful life of 5 years and a residual value of $20 000.Using the straight-line method,the balance in the accumulated depreciation account at the end of the third year of the machine's useful life is:

For the month of October: total sales = $125 000,total purchases = $80 000,beginning inventory = $32 000 and ending inventory = $44 000.The cost of sales for October is:

Which of the following expenses must be disclosed by a reporting entity?

Auto Care Ltd serviced a motor vehicle on 30 April and issued the invoice to the owner when the motor vehicle was picked up at the end of the day.The owner sends a cheque to Auto Care Ltd on 2 May which is received and banked by Auto Care Ltd on 6 May.Auto Care Ltd will recognise income on:

A statement of changes in equity shows closing capital as:

Machinery is purchased for $140 000.It is estimated that it has a useful life of 5 years and a residual value of $20 000.Using the straight-line method,calculate the amount of annual depreciation to be charged.

Triple bottom line reporting is when entities report on their:

The main expense incurred by a retail business is __________ of __________.

For a retailing or manufacturing entity,gross profit is equal to sales less:

The statement of profit or loss is normally completed:

Introduction to Accounting and Business Decision Making

Accounting in Society

Business Structures

Business Transactions

Balance Sheet

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Costvolumeprofit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters

Two expenses that are recognised under accrual accounting but which do not involve any cash flows _ and _.

The main expense incurred by a retail business is of .