stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
VCE Accounting Units 3&4 Exam Revision Flashcards | StudBud
Explore
/
VCE Accounting Units 3&4 Exam Revision
VCE Accounting Units 3&4 Exam Revision
100 terms
·
StudBud Administration
·
40 plays
#vce #accounting #revision #exam
Flashcards
100 cards
F
Practice quiz
P
Host live
L
Questions
100
Answers
1
Accumulated depreciation is classified as:
Expense
Revenue
Liability
Negative Non-current asset
2
The use of stock for advertising purposes will...
Decrease assets
Credit "Stock Gain"
Debit "Stock Control"
Credit "Stock Loss"
3
Business is seperate from the owner and other entities, and its records should be seperate
Monetary Unit
Going Concern
Entity
Conservatism
4
A stock gain will...
Credit "Stock Loss"
Credit "Stock Control"
Credit "Stock Gain"
Debit "Stock Gain"
5
What does 5/10, n/30 mean?
Customer gets a discount if they pay within 30 days
Customer needs to pay net amount in 30 days
Customer receives 10% if paid in first 5 days
Customer receives 5% if paid in first 10 days
6
Which transaction would be recorded in the General Journal?
Cash purchase of stock
Owner withdrawing cash
Owner contributing cash
Owner contributing a Non-current asset
7
loan interest is classified as:
Asset
Expense
Liability
Revenue
8
Including Sales Returns in the Income Statement is supported by
Relevance
Reliability
Comparability
Understandability
9
Which of the following is NOT a Qualitative Characteristic?
Reporting Period
Reliability
Relevance
Comparability
10
A debtor is somebody who purchases goods on credit from the business. So, in other words...
A debtor is a current liability
The business will owe the debtor money
A debtor is a customer
A debtor is a supplier
11
Purchase returns are recorded in the stock card by using
the cost price on the supplier's credit note.
First In First Out
the general mark up of the business
reverse of First In First Out
12
What is Accounting?
Financial data collecting, recording, reporting, analysis
Counting money
Manipulation of financial data and records
Recording day-to-day activities of a business
13
The owner contributed $5000, which account is credited?
Bank
Credit
Drawings
Capital
14
True or false: GST is included in the balance in the stock card.
True
False
15
Drawings affects:
cash only
cash and profit
profit only
16
Accrued Revenues need to be recognised in financial reports to reflect...
income received but not yet earned
income earned and received
expenses incurred but not yet paid
income earned but not yet received
17
The correct Creditors Control entry in the General Journal for a purchase return of $300
Debtors Control DR $300
Creditors Control DR $330
Creditors Control CR $330
Debtors Control CR $300
18
A bad debt will ...
Debit "Debtors control"
Credit "Debtors control"
Debit "Bad debts"
Credit "Bad debts"
19
Wages incurred is different from wages owed because:
wages incurred is expense; wages owed is asset
wages incurred is liability; wages owed is expense
wages incurred is expense; wages owed is liability
wages incurred is liability; wages owed is asset
20
Which of the following does NOT belong in the balance sheet?
credit sales
drawings
bank overdraft
vehicle
21
Why are drawing accounts not closed to the P&L Summary account?
Drawings only belong in the Balance Sheet
It would be a breach Reliability
Drawings involves the owner
Drawings is not an expenses
22
"The life of the business is assumed continuous" describes:
Going Concern
Monetary Unit
Entity
Historical Cost
23
Which of the following is NOT a benchmark for comparison?
budgeted perrmance
performance of similar firms
performance in previous periods
general performance of the economy
24
Which of the following is NOT a type of special journal?
Cash payments journal
Personal journal
Purchases journal
Cash journal
25
Items must be recorded and reported in the currency of where the reports are prepared
Reporting Period
Historical Cost
Entity
Monetary Unit
26
If an asset is sold at book value it will affect which of the following ratios?
Improve Debtors turnover
Improve Working capital ratio
Worsen Net profit margin
Improve Asset turnover
27
A business purchases goods on credit from a creditor. In other words...
A creditor is a current asset
A creditor is a supplier
A creditor is a current liability
A creditor is the same as a debtor
28
The life of the business is assumed to be continuous, and its records are kept on that basis:
Agree value
Entity principle
Reporting period
Going concern
29
Cost of Sales is
A revenue
Owner's equity
An expense
An asset
30
Cost of Sales is an expense incurred when...
The owner takes stock from the business
Stock is paid for
Stock is purchased
Stock is sold to customers
31
Return on Assets is a measure of...
Efficiency
Liquidity
Profitability
Stability
32
Reports should contain information verified by source document evidence so free from bias
Historical Cost
Comparability
Reliability
Conservatism
33
The source document used to verify a sales return is a
cash receipt
cheque butt
sales invoice
credit note
34
Depreciation affects:
cash only
cash and profit
profit only
35
Which would
not
be recorded as an "Advertising" expense?
Use of stock as a prize
Use of stock for display purposes
Donation of stock to a charity
Drawings of stock
36
Debtors is:
a revenue
an expense
a liability
an asset
37
"The business should use the same accounting methods to allow comparison of reports" describes:
Consistency
Comparability
Conservatism
Reporting Period
38
Why is the P&L Summary never listed in an accounting report?
It is a temporary account and only exists on Balance Day
It is an inaccurate representation
The Net Profit/Loss is always wrong
It is a summary
39
The life of the business is divided into 'periods' of time to allow reports to be prepared
Entity
Consistency
Reporting Period
Going Concern
40
First In First Out (FIFO) is
not
applied when recording a __________ in a stock card.
Purchase of Stock
Stock Gain
Stock Loss
Sale of Stock
41
Which of the following is NOT a measure of Profitability?
Net Profit Margin
Creditors Turnover
Return on Assets
Return on Investment
42
Return on Owners Investment assesses
long-term stability of the firm
profitability from an owners' perspective
expense control
profitability from a managers point of view
43
Loan repayments affects:
profit only
cash and profit
cash only
44
Financial data is:
information that has been sorted, classified and summarised
information collected from the ABS
providing financial information to assist decision-making
raw figures on which financial information is based
45
A reason for a stock gain is...
Oversuppy from a supplier
Oversupply to a customer
Oversupply to a supplier
Undersupply from a supplier
46
A resource controlled by the entity with expected economic benefit in the next 12mths is:
current liability
current asset
non-current liability
non-current asset
47
An INCREASE in Assets is shown on the:
Credit side
Debit side
48
Selling price is $350. Calculate price including GST
$350
$395
$385
$35
49
Which of the following accounts have a balance on the debit side?
Premises and Sales
Commision and Discount Revenue
Stock gain and Wages
Freight In and Freight Out
50
(T/F) The BDA for Accrued Revenue increases Liabilities.
False
True
51
Which is similarity between footing and balancing?
Balancing and footing both involve calculating totals
Balancing is more formal than footing
Only assets, liabilities and owner's equity are balanced
Balancing is done at the end of period
52
When received, Prepaid Revenue is recorded on the Balance Sheet as a...
Current Liability
Revenue
Expense
Current Asset
53
GST Paid affects:
profit only
cash and profit
cash only
54
A BDA for Accrued Revenue has the following effect on Net Profit:
Decrease
No Effect
Increase
55
A benefit of conducting a stocktake is..
Take stock home.
The physical counting of stock.
Employees can spend time with stock
Identification of stock losses and gains
56
A stock loss is...
Revenue earned
A Current Liability
When stock on hand is more than shown on stock card
An expense incurred
57
Which is NOT a benefit of the perpetual system of stock recording?
Provides a continuous record of stock on hand
Stock Losses and Gains can be detected
Increases stock on hand
Fast and slow moving lines of stock detected
58
Cashflow Cover is a measure of a firm's ability to meet its short term obligations with
Current Assets
Operating Cashflow
Net Cashflow
Total Assets
59
(T/F) BDA's are likely to increase the number of accounts incl in a Post Adjusted Trial Balance
True
False
60
Using a credit note to record returns of stock complies with which qualitative characteristic?
Comparability
Understandability
Relevance
Reliability
61
A purchase return is
reported in the Cash Flow Statement
not reported in an accounting report
reported in the Income Statement
reported in the Balance Sheet
62
Drawings will:
Increase Expenses
Decrease Expenses
Increase Capital
Decrease Assets
63
Losses should be recorded when probable but gains only when certain
Comparabilty
Reliability
Conservatism
Consistency
64
A stock loss will...
Debit "Stock Control"
Credit "Stock Gain"
Credit "Stock Control"
Credit "Stock Loss"
65
Which set of steps represents the accounting process?
Provide advice>Records>Source documents >Reports
Records>Source documents >Reports>Provide advice
Reports>Source documents>Provide advice>Records
Source documents>Records>Reports> Provide advice
66
The purpose of the BDA for prepaid revenue is to...
recognise the revenue in the reporting period when earned
keep accountants in a job
recognise the expense in the reporting period when incurred
recognise the revenue in the reporting period when paid for
67
Which of the following could explain an improvement in Gross Profit Margin?
a reduction in stock losses
an increase in sales price
a reduction in wages
an increase in sales volume
68
The source document for a credit transaction is:
memo
cheque butt
cash receipt
invoice
69
Which of the following does NOT belong in the income statement?
Bank
Cost of sales
Rent expense
Sales revenue
70
Which of the following errors will be revealed by using a trial balance?
An incorrect amount on both sides of the ledger
Transaction recorded in the wrong account
Two entries recorded on the same side
An omitted transaction
71
A bad debt is a/an ...
liability
expense
credit
revenue
72
Which account is NOT affected in a credit sale?
Credit Sales
Stock Control
GST Clearing
Creditors Control
73
A credit balance on GST Clearing means:
An asset to the business
An expense to the business
A refund from the ATO
A liability to the ATO
74
The correct Stock Control entry in the General Journal for a Sales Return of $300 (50% mark up)
Stock Control CR $150
Stock Control DR $200
Stock Control CR $200
Stock Control DR $150
75
A Stock loss occurs when..
Stock is returned
Undersupply to customers
Oversupply from suppliers
Oversupply to customers
76
Reports should include all information which is useful for decision-making
Comparability
Understandability
Reliability
Relevance
77
(T/F) If an order is placed but no deposit is received, the transaction should be rec in the GJ
False
True
78
The role of a stocktake is to...
Keep staff busy
Take the stock for sale
Detect any stock losses or gains
Verify accuracy of stock cards
79
Sales Revenue – Cost of Goods Sold =
Net Profit
Cost of Sales
Cash
Gross Profit
80
When a payment that includes Accrued Revenue is received, the transaction is recorded in the...
Cash Payments Journal
Special Journals
General Journal
Cash Receipts Journal
81
Which of the following is NOT a qualitative characteristics?
Consistency
Understandability
Relevance
Reliability
82
Prepaid Revenue should not be recorded as revenue until...
there has been an exchange of goods/services
the beginning of the next reporting period
the prepayment matches the value of the sale
the GST has been received
83
A stock gain...
Is an expense
stock on hand is less than shown on stock card
stock on hand is greater than shown on stock card
Is an asset
84
Where would the P&L Summary appear?
Balance Sheet
General Ledger, Balance Sheet
Trial Balance, Balance Sheet
General Journal, General Ledger
85
The consistency principle states that:
product quality must remain the same
the production methods should remain the same every time
your amount of study must stay the same all year
accounting methods be applied the same way between periods
86
Which entry would NOT be recorded in the General Journal?
Owner withdrawing stock
Owner contributing cash
Correcting entries
Recording of a bad debt
87
Reports should be presented in a manner that makes it easy for the user to comprehend
Consistency
Comparability
Conservatism
Understandability
88
Sales returns are recorded in the stock card by using
the cost price on the supplier's credit note
the lowest available price in the stock card
the First In First Out method
the latest issued cost price in the stock card
89
(T/F) When a deposit on a sale is received, GST is not recorded
False
True
90
A list of all account in the general ledger and their balances is known as a:
ledger account
trial balance
credit journal
general ledger
91
How is the 'Drawings' account closed off?
Cr in Drawings, Dr in Capital
Dr in Drawings, Cr in P&L summary
Dr in Drawings, Cr in Capital
Cr in Drawings, Dr in P&L summary
92
What is the qualitative characteristic relating to the presentation of the income statement?
relevance
understandability
comparability
reliability
93
"Transactions should be recorded at their original purchase price" describes:
Conservatism
Reliability
Historical Cost
Going Concern
94
A bad debt is a/an...
Expense
Revenue
Current asset
Current liability
95
Conservatism suggests:
professional language must be used in all reports
gains recorded when probable, losses recorded when certain
losses recorded when probable, gains recorded when certain
corporate dress is imposed at all times
96
Purchase Returns are recorded in the...
Cash Receipts Journal
General Journal
Cash Payments Journal
Purchases Journal
97
The Historical Cost principle states that a transaction should be recorded:
at market value
at the current sale price
at original cost evidenced by source documents
at the price of a replacement item
98
The generally accepted rules that govern the way accounting information is generated is:
going concern
accounting principles
the Australian Accounting Standards Board
the entity concept
99
Sales Returns are recorded in the
Sales Journal
Cash Payments Journal
General Journal
Cash Receipts Journal
100
The use of stock for advertising purposes will...
Increase Assets
Increase Owners Equity
Decrease assets
Increase Liabilities
