The key words to define a liability are

Present obligation to transfer an econ. resource/past events

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

A Classified Balance Sheet satisfies the QC of understandability because

It uses headings, subheadings, totals & subtotals

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 inventory during the reporting per'd

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

Assets decrease and OE decrease

The key words to define an asset include

present resource controlled/result of past events

studbud

VCE Accounting Unit 3 Outcome 1

17 termsStudBud Administration51 plays

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

Flashcards17 cardsFPractice quizPHost liveL

Questions 17

Answers

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

VCE Accounting Unit 3 Outcome 1 Flashcards | StudBud