explain the Profit (Profit / Net Sales) profitability ratios;

Shows the percentage of profit in each dollar of sales

Briefly outline the purpose of depreciation

Depreciation is a process of expense allocation

Which one of the following are all current liabilities?

Bank Loan, Accounts Payable, Accrued Wages

Identify four ratios used to measure profitability.

Gross Profit/Profit/Expense/Return on Assets

An asset is a resource controlled by the entity as a result of past events and from which;

future economic benefits are expected to flow to the entity

Which of the equations below represents how a balance sheet is presented?

Assets – Liabilities = Equity

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Year 11 Accounting Revision

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ATAR Year 11 Accounting

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Questions 14

Answers

1
GST is an acronym for;
Goods and Savings Tax
Government Services Tax
Government and Savings Tax
Goods and Services Tax
2
A business that uses raw materials to produce products for sale is what type of business?
Manufacturing
Retail Sales
Trading
Service
3
explain the Profit (Profit / Net Sales) profitability ratios;
Shows the percentage of profit in each dollar of sales
Shows the profit in each dollar of sales
Not sure something to do with profit/Percentage and dollars
Shows the average of profit in each dollar of sales
4
Which of the following applies to business ownership as a small proprietary company?
No continuity of existence
A separate legal entity
Unlimited liability of owners
More than 50 owners
5
Briefly outline the purpose of depreciation
Depreciation is a process of future income allocation
Depreciation is a process of expense allocation
Depreciation is when stock increases in value
Depreciation "to be honest I have no Idea"
6
Which one of the following are all current liabilities?
Accounts Payable, Bank Loan, Mortgage
Bank Loan, Accounts Payable, Accrued Wages
Cash at Bank, Accounts Receivable, Inventory
Motor Vehicle, Petty Cash, Buildings
7
30/6/18 a business will have earned $1,375 interest that has not been received. What is this?
accrued income
unearned income
prepaid expense
accrued expense
8
Identify four ratios used to measure profitability.
Gross Profit/Expense/Return on Assets
Gross Profit/Profit/Expense/Return on Assets
Gross Profit/Profit/Return on Assets
Gross Profit/Profit/Expense/Assets
9
An asset is a resource controlled by the entity as a result of past events and from which;
future economic benefits are probable
future economic benefits are expected to flow to the entity
future economic benefits must be measured reliably
future economic benefits expected to flow out of the entity
10
Which legislation applies to the formation of business partnerships?
Partnership Act 1895 (WA)
GST Act 1999 (WA)
Business Names Registration Act 2011 (Cth)
Bankruptcy Act 1966 (WA)
11
Which would not be considered by financial institutions when looking to approve finance?
Stock on hand
Size of business premises
Ability of the business to quickly convert assets into cash
Number of employees
12
When employing the straight line method of depreciation, the value of depreciation
drops by 8.5% each year
stays the same each year
decreases in value each year
increases in value each year
13
Which of the following ratios can be used to measure profitability?
Rate of Return on Assets
Working Capital
Debt to Equity
Quick Asset
14
Which of the equations below represents how a balance sheet is presented?
Assets + Equity = Liabilities
Assets – Liabilities = Equity
Equity + Liabilities = Assets
Current Assets – Current Liabilities = Equity

Year 11 Accounting Revision Flashcards | StudBud