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Balance Day Adjustments Flashcards | StudBud
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Balance Day Adjustments
Balance Day Adjustments
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Review of Balance Day Adjustments in VCE Accounting #accounting #balancedayadjustments
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
What is NOT an example of an expense?
Advertising
Accrued Expense Paid
Wages
Depreciation
2
Was Mr. D "gettin down" to this song when he used to hit the clubs?
Hell yeh
Choreography & all.
You know it.
Hell nah
3
How do we treat GST when recording the Balance Day Adjustment for prepaid expenses?
It is an ongoing payment
We don't, GST does not affect the business
Paid at the time of the payment not when recording the BDA
We pay it once the BDA has been dealt with
4
Stock Gain is an example of...
An expense that is not a payment
A payment that is not an expense
A revenue that is not a receipt
A receipt that is not a revenue
5
Balance Day Adjustments are reported based on which accounting PRINCIPLE?
Historical Cost
Reporting Period
Going Concern
Consistency
6
GST paid, GST received and GST settlement are all examples of
Operating Activities
Liabilities
Financing Activities
Investing Activities
7
Financing activities ONLY include:
Anything to do with the owner or loans except interest
Anything to do with the owner or loans
Capital and Drawings
Loans and Interest on Loans
8
Why is Reliability breached when reporting depreciation of non-current assets?
Both B and C are correct
The figure for HC might have changed over time
The valuing of a non-current assets RV may not be accurate
The figures for UL and RV are based on estimates
9
Depreciation is an example of...
A revenue that is not a receipt
A receipt that is not a revenue
An expense that is not a payment
A payment that is not an expense
10
Which is NOT part of the definition of a Current Asset?
Controlled by the entity
Generate future outflows
Item of future economic benefit
Used within 12 months
11
Accrued expenses are expenses that...
Have been paid but not yet incurred
Both B and C are correct
Should be reported as Assets in the Balance Sheet
Have been incurred but not yet paid
12
Operating activities include:
Only Sales and Cost of Sales
Only GST and Receipts from Debtors
Day to day trading activities involving cash
Everything that isn't a financing or investing activity
13
Which statement is true if the balance day adjustment for prepaid rent was NOT done?
LIABILITIES would be OVERSTATED
ASSETS would be OVERSTATED
OWNER'S EQUITY would be UNDERSTATED
ASSETS would be UNDERSTATED
14
Each balance day adjustment of expenses..
Decreases the expense, therefore decreases Net Profit
Increases the expense, therefore decreases Net Profit
Increases the expense, therefore increases Net Profit
Decreases the expense, therefore increases Net Profit
15
Without Balance Day Adjustments...
Reports wouldn't include all information for decision making
All answers are correct
All liabilities would be overstated
Employees would not get paid
16
Who sings this song?
Blackstreet
DMX
B2K
Bone Thugs
17
The depreciation formula is:
A= L + OE
(HC-RV)/UL
SP= CP(1+MU%)
Net Profit/Sales
18
Purchasing a non-current asset for cash would be classed as ___ in the Cash Flow Statement
An Operating Activity
A Financing Activity
An Investing Activity
It is not included in the Cash Flow Statement
19
The order in which a cash flow statement is arranged is...
Investing, Operating, Financing
Operating, Investing, Financing
Financing, Operating, Investing
Financing, Investing, Operating
20
When is Balance Day?
31st December
First day of the reporting period
30th of June
Last day of the reporting period
