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Accounting Chapters 1&2 Flashcards | StudBud

Explore/Accounting Chapters 1&2

Accounting Chapters 1&2

9 terms·StudBud Administration·75 plays

Year 11 Accounting - introductory concepts

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Questions 9

Answers

1
Which of the following is not a current asset...?
cash at bank
GST payable
accounts receivable
inventory
2
A system that records two effects on the accounting equation as a result of each transaction...
accrual accounting
journals
double-entry accounting
cash accounting
3
What Assumption is breached if Rhonda records paying her daughter's school fees as a business expense?
Entity
Accrual basis
Going Concern
Period
4
The terms 2/7, n/30 mean...
No discount is offered
7% discount if paid in 2 days
2% discount if paid in 7 days
Net amount is due in 7 days
5
Which of the following statements about GST is incorrect?
Will usually have a balance owing to the ATO
It can be a CA or a CL
Will result in owing or being owed GST
GST Receivable will result in a GST Settlement
6
Which statement about source documents is incorrect?
provide evidence of a transaction
must be retained by the business
ensure reports are useful for decision-making
ensure reports are free from bias
7
The purpose of accounting is to:
assist decision-making
provide financial data
provide financial information
collect source documents
8
Which of the following equations is incorrect?
OE = A + L
L = A - OE
CA + NCA = Equities
A = L + OE
9
Claims on the assets of the business are also called...
equities
owner's equity
debtors
liabilities