ATT Principles of Accounting – CBE Exam with all Correct
& 100% Verified Answers |Actual Complete Update |
Already Graded A+
Income received in advance (deferred income) does what to the profit for the year? ✔Correct
Answer-decreases it
A prepayment will do what to the profit for the year? ✔Correct Answer-increases it
Development expenditure will always be capitalised in the accounts ✔Correct Answer-false
Research expenditure will never be capitalise in the accounts ✔Correct Answer-true
A capital grant should be recognised when the asset it is subsidising is purchased under the
accrual model ✔Correct Answer-false
A capital grant should initially be recognised as deferred income under the accrual model
✔Correct Answer-true
An increase in closing stock will do what to the gross profit and net assets of a business?
✔Correct Answer-increase it
When is the 'going concern' of a company assessed from? ✔Correct Answer-12 months from
the date of the accounts
A provision should be recognised when an outflow of economic benefits is possible ✔Correct
Answer-true
a contingent liability is only ever disclosed, never recognised ✔Correct Answer-false
a contingent asset should be recognised when an inflow of economic benefit is probable
✔Correct Answer-false
a contingent liability is not disclosed if there is only a remote chance that it will lead to outflow
of economic benefit ✔Correct Answer-true
Does Share capital appear in a company's financial statements, sole trader's account or either
✔Correct Answer-company
Does accrued interest appear in a company's financial statements, sole trader's account or
either ✔Correct Answer-either
, overprovision for corporation tax in the previous period goes on which side of the Corporation
tax creditor T account? ✔Correct Answer-debit
Corporation tax paid goes on which side of the Corporation Tax creditor T account? ✔Correct
Answer-Debit
Corporation tax charge for the current period goes on which side of the Corporation Tax creditor
T account? ✔Correct Answer-Credit
Companies withhold basic rate income tax when making which payments to individuals?
✔Correct Answer-Interest and royalties
Net Cash from Operating activities - Depreciation is ... ✔Correct Answer-added back
Net Cash from Operating activities - Increase in debtors is... ✔Correct Answer-deducted
The trial balance is not used to... ✔Correct Answer-present results to the owners and make
business decisions
Capital balance = ✔Correct Answer-assets - liabilities + profit
Net Book Value ✔Correct Answer-cost - accumulated depreciation
Valuation of stock ✔Correct Answer-lower of cost and net realisable value
Write off a debt ✔Correct Answer-Dr Bad and doubtful debts expense / Cr Trade debtors
Net Cash from Operating activities - increase in creditor ✔Correct Answer-added
Net Cash outflow = ✔Correct Answer-Additions + disposal (Proceeds - NBV = Profit)
Trader's net profit ✔Correct Answer-closing net assets + drawings - capital introduced -
opening net assests
Debit entry in the cash account will not increase an overdraft ✔Correct Answer-true
Credit entry in the cash account will increase a bank balance ✔Correct Answer-false
Repairs of a faulty machine ✔Correct Answer-revenue expenditure
Discounts allowed go on which side of the debtors T account ✔Correct Answer-debit
Sales + purchases ✔Correct Answer-net of VAT
& 100% Verified Answers |Actual Complete Update |
Already Graded A+
Income received in advance (deferred income) does what to the profit for the year? ✔Correct
Answer-decreases it
A prepayment will do what to the profit for the year? ✔Correct Answer-increases it
Development expenditure will always be capitalised in the accounts ✔Correct Answer-false
Research expenditure will never be capitalise in the accounts ✔Correct Answer-true
A capital grant should be recognised when the asset it is subsidising is purchased under the
accrual model ✔Correct Answer-false
A capital grant should initially be recognised as deferred income under the accrual model
✔Correct Answer-true
An increase in closing stock will do what to the gross profit and net assets of a business?
✔Correct Answer-increase it
When is the 'going concern' of a company assessed from? ✔Correct Answer-12 months from
the date of the accounts
A provision should be recognised when an outflow of economic benefits is possible ✔Correct
Answer-true
a contingent liability is only ever disclosed, never recognised ✔Correct Answer-false
a contingent asset should be recognised when an inflow of economic benefit is probable
✔Correct Answer-false
a contingent liability is not disclosed if there is only a remote chance that it will lead to outflow
of economic benefit ✔Correct Answer-true
Does Share capital appear in a company's financial statements, sole trader's account or either
✔Correct Answer-company
Does accrued interest appear in a company's financial statements, sole trader's account or
either ✔Correct Answer-either
, overprovision for corporation tax in the previous period goes on which side of the Corporation
tax creditor T account? ✔Correct Answer-debit
Corporation tax paid goes on which side of the Corporation Tax creditor T account? ✔Correct
Answer-Debit
Corporation tax charge for the current period goes on which side of the Corporation Tax creditor
T account? ✔Correct Answer-Credit
Companies withhold basic rate income tax when making which payments to individuals?
✔Correct Answer-Interest and royalties
Net Cash from Operating activities - Depreciation is ... ✔Correct Answer-added back
Net Cash from Operating activities - Increase in debtors is... ✔Correct Answer-deducted
The trial balance is not used to... ✔Correct Answer-present results to the owners and make
business decisions
Capital balance = ✔Correct Answer-assets - liabilities + profit
Net Book Value ✔Correct Answer-cost - accumulated depreciation
Valuation of stock ✔Correct Answer-lower of cost and net realisable value
Write off a debt ✔Correct Answer-Dr Bad and doubtful debts expense / Cr Trade debtors
Net Cash from Operating activities - increase in creditor ✔Correct Answer-added
Net Cash outflow = ✔Correct Answer-Additions + disposal (Proceeds - NBV = Profit)
Trader's net profit ✔Correct Answer-closing net assets + drawings - capital introduced -
opening net assests
Debit entry in the cash account will not increase an overdraft ✔Correct Answer-true
Credit entry in the cash account will increase a bank balance ✔Correct Answer-false
Repairs of a faulty machine ✔Correct Answer-revenue expenditure
Discounts allowed go on which side of the debtors T account ✔Correct Answer-debit
Sales + purchases ✔Correct Answer-net of VAT
