Question

Framework for the Preparation and Presentation of Financial Statements, the term used with respect to Income which arises in the ordinary course of business is:

	a.	Gain
	b.	Profit
	c.	Sales
	d.	Revenue
	e.	Equity

Ltd a Debit amount of $58,300 including 10% GST, was posted to the Accounts Receivable Control account on the last day of 30th June, 2019. Originally, from which Special Journal would this posting of $58,300 most likely have come from?

	a.	Purchases
	b.	Cash Payments & Purchases
	c.	Cash Receipts & Sales
	d.	General
	e.	Sales

transaction which occurred on 28 September 2020, Clifton Street Ltd sold on account 128 Laptops to a new client Hill Road Ltd at $1235 each plus GST on payment terms of 2/10, n/30. Clifton Street Ltd received payment for the sale on the 10 October 2020. Assuming Clifton Street Ltd is registered for GST and uses the Periodic inventory method for recording inventory, which journal entry for GST is correct for the payment received by the firm ?

	a.	Credit - GST Collections
	b.	The GST Collections and GST Outlays accounts are not affected by the payment received.
	c.	Credit - GST Outlays
	d.	Debit - GST Collections
	e.	Debit - GST Outlays

order do the following steps in the accounting cycle occur?

1. Prepare closing entries

2. Post business transactions to the ledger

3. Enter business transactions in the journal

4. Prepare adjusting entries

5. Prepare financial statements

	a.	1, 2, 3, 4, 5
	b.	5, 4, 3, 2, 1
	c.	4, 2, 1, 5, 3
	d.	3, 1, 5, 4, 2
	e.	None of the above

steps in the accounting cycle in their correct sequence:

1. Entries are made in the journal

2. A source document is prepared

3. A business transaction occurs

4. A trial balance is prepared

5. Entries are made in the ledger

	a.	3, 2, 1, 5, 4
	b.	2, 3, 1, 4, 5
	c.	1, 3, 2, 5, 4
	d.	5, 4, 2, 1, 3
	e.	4, 2, 3, 1, 5

0 April, 2019 Osaka Ltd paid $10800 cash for a 48-month insurance policy plus

10% GST. What is the initial general journal entry to record the payment?

	a.	Debit – Insurance Expense $10800 Debit – GST Outlays $1080 Credit – Equity $11880
	b.	Debit - Prepaid Insurance $10800 Debit - GST Outlays $1080 Credit - Cash $11880
	c.	Debit - Prepaid Insurance $10800 Debit - GST Outlays $1080 Credit - Insurance Expense $11880
	d.	Debit – Cash $10800 Credit - Prepaid Insurance $10800
	e.	Debit - Insurance Expense $9720 Debit - GST Collected $1080 Credit - Prepaid Insurance $10800

Purchases Returns and Allowances is what type of account?

	a.	Liability
	b.	Contra to Equity
	c.	Expense
	d.	Contra to the cost of Purchases
	e.	Contra to an Asset

Ltd purchased two vehicles for their business on 1 January 2020. These vehicles cost $270,000 each and have a useful life of 5 years with an expected residual of $30,000 each. The adjusting entry for depreciation on 31 December 2020, using the straight-line method, is which of the following for Strong Steel Pty Ltd :

	a.	Dr - Accumulated Depreciation $96 000; Cr - Depreciation Expense $96 000
	b.	Dr - Depreciation Expense $48 000; Cr - Accumulated Depreciation $48 000
	c.	Dr - Depreciation Expense $54 000; Cr - Accumulated Depreciation $54 000
	d.	Dr - Accumulated Depreciation $48 000; Cr - Depreciation Expense $48 000
	e.	Dr - Depreciation Expense $96 000; Cr - Accumulated Depreciation $96 000

assumption which requires transactions to be recognised in the accounting

reports when they occur and not when cash is received or paid is known as:

	a.	Materiality
	b.	Accounting Entity
	c.	Conservatism
	d.	Going Concern
	e.	Accrual Basis

final end of financial year 30th June, 2020 records extracted from the books of the firm Black & White Pty Ltd show the following figures:

GST Collections $1080

GST Outlays $1890

Salaries Payable $540

Rent Expense $5400

Interest Expense $9720

Prepaid Rent $1620

Salary Expense $4320

Prepaid Interest $1080

During the closing process the total Debit to the Profit and Loss Summary account would be:

	a.	$17820
	b.	$19440
	c.	$25650
	d.	$22680
	e.	$ 2970

balances were taken from the accounts of Gilbert Pty Ltd

	1 Jan 2020	31 Dec 2020
Assets	$ 607 50	$1 093 500
Liabilities	$ 229 500	$ 378 000

Assuming there were $ 391 500 in Drawings and a further $ 471 000 in contributions of Capital made during the year, the Net Profit for 2020 must have been:

	a.	$ 378 000
	b.	$ 418 500
	c.	$ 715 500
	d.	$ 258 000
	e.	None of the above

Answer 1

1. d. Revenue

2. e. Sales

3. c - credit Gst Outlays

4. E - none

5. A 3,2,1,5,4

6. B.

.	Debit - Prepaid Insurance $10800 Debit - GST Outlays $1080 Credit - Cash $11880

7. C Expense

8.

b.	Dr - Depreciation Expense $48 000; Cr - Accumulated Depreciation $48 000

9. E accrual basis

10. A 17,280

11. D 258,000

Hope this meets your purpose.

Kindly Like the answer if it was helpful. This motivates the experts.

Thanks.