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POA
What are the internal stakeholders?
What is Prudence concept?
POA
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Answers
1
What is Prudence concept?
Business must adjust possible losses even if not confirmed
Doesn't exist
Never learn
Business must adjust possible profit even if not confirmed
2
What are the internal stakeholders?
Pigu, Pimples
Sole proprietors and managers, Employees
Runner, Eyes
Customers, Suppliers
3
What is double entry when the business returns goods to its suppliers?
Dr Trade Payables Cr Sales Revenue
Dr Trade Payables Cr Inventory
Dr Trade Payables Cr Cash at bank
Dr Other Payables Cr Cash at bank
4
What is Cash at Bank nature?
Nothing
Debit
Credit
Pigu
5
Why is a trial balance necessary?
Preparations of the financial statements
To give an accomplishment to accountants when they balance
Check arithmetic errors
To get inner peace
6
What are examples of cost of purchases?
Cost price
Freight and delivery charges
All of the above
Salaries to workers to process the goods
7
What does the government need to know and why?
Nothing, its boring
Income and profit, how much tax to collect from business
Profit, they want to see business in the country develop
Everything, they want to buy the business in the future
8
What is the difference between Cash and Trade discount?
One is scolded by Yong, other scolded by Shahul
One use cash, other pay later
One is run, other is eye big
One is recorded, the other is not
9
Why is bank reconciliation necessary?
To please Shahul
To calculate the accurate bank balance
Deterrence against fraud
To give accountants more work to do
10
What is the double entry when the business buys from its suppliers on credit?
Dr Inventory Cr Cost of Sales
Dr Inventory, Cost of Sales Cr Trade Payables, Sales payable
Dr Inventory Cr Trade Payables
Dr Inventory Cr Cash at Bank
11
What is integrity?
The state of being whole and undivided
One of the values in Hong Wen
Lack of corruption in electronic data
Being straightforward and honest in all business relations
12
What is the reducing balance formula?
Rate of Dep per annum x Original - Accumulated Dep
Rate of Dep per annum x Original + Accumulated Dep
Rate of Dep per annum x NBV
Rate of Dep per annum x Original x Accumulated Dep
13
What is the double entry for Depreciation?
Dr Depreciation of Motor Vehicles, Cr Cash at Bank
Dr Depreciation of MV, Cr Accumulated Depreciation
Dr Depreciation of Motor Vehicles, Cr Motor Vehicles
Dr Accumulated Depreciation of MV, Cr Depreciation
14
What is the Accounting entity concept?
Transactions affecting the business are recorded
A pigu
Accounting has a ghost
Doesn't exist
15
What is the difference between Capital and Revenue expenditure?
One is current asset, one is expense
One is non-current asset, one is expense
One is current asset, one is liabilities
One is current asset, one is equity
16
What is bookkeeping?
Recording
Accounting
Keeping a book
Doesn't exist
17
What is the Consistency concept?
Balance sheet must consistently match
Profit must be consistently increasing
Methods used must be consistent from period to period
Doesn't exist
18
What is the Monetary concept?
Business make money
A money face mind
Record transactions that can be measured in monetary terms
Doesn't exist
19
What is accounting?
Recording,summarising, analysing,interpreting and reporting
Accounting is Accounting lo
Recording, Singing
Recording, Dancing
20
What is decision-making?
Help people in the business make decisions
Making decisions
Deciding to put on braces
Deciding to remove my pimples
21
What is trade payables?
You pay your trading
Forgot
Buying inventory on credit
Buying assets on credit
22
What is Depreciation, Accumulated Depreciation account?
Expense, Negative Non-current Assets
Expense, Non-current Assets
Negative Non-current Assets, Expense
Non-current Assets, Expense
23
What are examples of Capital expenditure?
Freight Outwards of the car
Car
All of the above
The COE of the car
24
What does the competitors need to know and why?
Everything, they want to buy the business
Everything, bo liao
Income and profit, compare their performance and improve
Nothing, for what
25
Do you think you can get A1 for POA?
No, Big Eyes subject is my Bae I can't betray it
More teachers will pedo me soon
Time to run more marathon
Shahul better give me present le
26
What is matching concept?
Balancing both income and expenses
Doesn't exist
Only the income and expenses in the period is recorded
Matching assets and liablities
27
What is the double entry when there is a dishonoured cheque for a debtor? (given a discount)
Dr Debtor, Discount Allowed Cr Cash at Bank
Dr Debtor Cr Cash at Bank, Discount Allowed
Dr Debtor Cr Cash at Bank, Discount Received
Dr Debtor Cr Cash at Bank
28
What is the Historical cost concept?
Transactions are to be recorded with their history
Transactions are to be recorded at their buying cost
Transactions are to be recorded at their selling cost
Transactions are to be recorded at their original cost
29
What is Stewardship?
Does not own the business but is responsible to manage it
A ship
Being a servant
Doesn't exist
30
What is accrual concept?
It is the need for prepaid and accural
Whether if it is received, income is recorded if recognise
Doesn't exist
Whether if it is received, income is recorded
31
What is the Objectivity concept?
Being objective
Transactions are recorded based on info that is reliable
A pimple
A goal
32
What is the Going Concern concept?
Assumes business has no life
Assumes business has an definite life
Assumes business is a living thing
Assumes business has an indefinite life
33
What is Objectivity?
An object with a vity
Focusing on facts and not influence in personal feelings etc
A goal
The quality of being objective
34
What does sole proprietors need to know and why?
Nothing, Its just to create accounting
All info, its their business
Profit, they make a business just to earn money
All info, make decisions on how to plan, control etc
35
What does employees need to know and why?
Everything, Bo liao
Nothing, they can't see the accounts
Profit and cash, to continue working for the business or not
Nothing, What for?
36
What is Materiality concept?
An item is material if it makes no difference to decisions
The quality of being composed of matter
An item is material if it makes a difference to decisions
A material
37
What are the external stakeholders?
Pigu, Pimples
Niu, Cow
Customers, Suppliers
Government, Competitors
38
What are examples of revenue expenditure?
All of the above
Maintenance for car
Petrol for car
Road tax for car
39
What is the Accounting period concept?
The business is a pendulum
Business need to prepare financial statements once a year
Doesn't exist
Being a business
40
What are the source documents?
Invoice, Credit Note, Debit Note
Niuceipt, Niu voucher, Niu statement
Receipt, Payment voucher, bank statement
Niuvoice, Niu Note, Niubit Note, Niuceipt, Niu voucher
