When wages are paid to employees, what is the effect on the balance sheet?

Assets decrease and OE decrease

A Classified Balance Sheet satisfies the QC of understandability because

It uses headings, subheadings, totals & subtotals

The key words to define a liability are

Present obligation to transfer an econ. resource/past events

A Trial Balance will pick up the following error

Two debits for a single transaction

A GST Refund may occur if a business

Purchased a large amount of stock during the reporting per'd

What does the following on a Tax Invoice mean? Terms: 5/7, n/30

30 days to pay net amount & 5% discount if paid in 7 days

The key words to define an asset include

present resource controlled/result of past events

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VCE Accounting Unit 3 Outcome 1

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VCE Accounting Unit 3 Outcome 1 2019 study design covers chap 1-5 of the Cambridge text

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Questions 17

Answers

1
Which of the following is not a qualitative characteristic
Verifiability
Going Concern
Timeliness
Understandability
2
When wages are paid to employees, what is the effect on the balance sheet?
Assets decrease and liabilities increase
Assets decrease and OE decrease
Assets increase and OE decreases
Liabilities increase and OE decreases
3
Which AA allows us to report assets and liabilities as current and non-current?
Going Concern
Entity
Period
Accrual Basis
4
QC that only information that is capable of making a difference to decisions need be included
Understandability
Relevance
Verifiability
Faithful Representation
5
Which of the following is not a cross reference in the GST Clearing account
Bank
Sales
Accounts Receivable
Accounts Payable
6
A Classified Balance Sheet satisfies the QC of understandability because
The information it contains is useful for decision making
It uses headings, subheadings, totals & subtotals
The information it contains can be compared over time
based on source documents
7
The key words to define a liability are
decrease in assets/decrease in owners equity
Present obligation to transfer an econ. resource/past events
Present obligation to t'fer an econ. resource/future events
Present economic resource/result of past events
8
A good strategy to manage accounts payable is
All of these
Pay within, but as close as possible to credit terms
Pay early to earn any discounts offered
Develop a strong relationship with each supplier
9
A credit note provides evidence of a
Credit sale
Purchase return
Credit purchase
Cash sale
10
QC that implies transactions should be recorded at their original purchase price
Relevance
Faithful Representation
Verifiabiltiy
Comparability
11
Which of the following is not an accounting assumption
Accounting Entity
Relevance
Accrual
Period
12
Which of the following is not a source document for a journal
Tax Invoice
Statement of Account
Memo
Cheque Butt
13
A Trial Balance will pick up the following error
The reversal of debits & credits from a transaction
The omission of a transaction
Recording of the wrong amount on both sides of the ledger
Two debits for a single transaction
14
A GST Refund may occur if a business
Purchased a large amount of stock during the reporting per'd
Sold a non-current asset during the reporting period
Sold more stock than it purchased
Has a credit balance in their GST account
15
What does the following on a Tax Invoice mean? Terms: 5/7, n/30
normally 30% discount if paid between 5 & 7 days
30 days to pay net amount & 5% discount if paid in 7 days
7% discount if paid in 5 days/ net amount due in 30 days
$5 is due in 7 days and the net balance in 30 days
16
The key words to define an asset include
Inflow of economic benefits/savings in outflow
increase in assets/ decrease in liabilities/increase OE
present obligation to transfer/result of past events
present resource controlled/result of past events
17
Which source document will verify an internal transaction?
Memo
Statement of account
Cheque Butt
Tax Invoice

VCE Accounting Unit 3 Outcome 1 Flashcards | StudBud