ATT Accounting CBE Exam Questions With Correct Answers 100% Verified

ATT: Accounting CBE Exam Questions With Correct
Answers 100% Verified

What are the 2 purposes of an accounting system? - CORRECT ANSWER -1. to see if the business
is operating at a profit

2. to see if the business can meet its liabilities



What is the purpose of accounting from a tax perspective? - CORRECT ANSWER -It is the starting
point for calculating tax



What businesses can use the cash basis for accounting? - CORRECT ANSWER -1. Sole trader

2. Partnership



What is the income threshold for using the cash basis? - CORRECT ANSWER -£150,000



What businesses fall under the separate entity concept? - CORRECT ANSWER -All businesses



What is on a balance sheet? - CORRECT ANSWER -Assets, liabilities and capital



How do you calculate proprietor's funds? - CORRECT ANSWER -Capital + profits (- losses) -
drawings

or

Assets - Liabilities



What is the name for how much the business owes the owner? - CORRECT ANSWER -
Proprietor's funds?