Principles of Accounting - ATT -Questions
Product is developed in 20X2, launch date in 20X3 but there are a
number of advance orders already placed. What can/should I do? - ✔
✔ Capitalise the cost of development in the 20X2 accounts
capitalised amount should be amortised over the benefit period of the
expenditure
Purchased goodwill should be capitalised as an intangible asset - ✔ ✔
true
The price of a commodity is rising. Is the net realisable value of the
stock likely or unlikely to be lower than the cost value? - ✔ ✔
unlikely
What is the double entry to record an increase in the provision for
doubtful debts? - ✔ ✔ Dr Bad debts expense
Cr Provision for doubtful debts
Company has gone into liquidation and owes you money. Double
entry? - ✔ ✔ Dr Bad debts expense
Cr Debtors
What is the equation for the amount for bad debts expense to be
included in the profit and loss account? - ✔ ✔ Written off debts +
(closing provision - opening provision)
Received cash from a customer whose debt has previously been written
off. Double entry to record this amount? - ✔ ✔ Dr Cash
, Cr Bad debts expense
In a partnership, salaries are not... - ✔ ✔ an expense
Partner's drawings are deducted from their current accounts - ✔ ✔
true
interest on partner's capital account is taxed as if it were interest from
a bank - ✔ ✔ false
partner's capital accounts are classifies as creditors due after one year
in the balance sheet - ✔ ✔ false
New capital introduced by partners during the year must be disclosed
on the face of the balance sheet - ✔ ✔ false
What is the double entry for an interim dividend? - ✔ ✔ Dr Profit
and Loss account reserve
Cr Bank
Dividends are always included in the year in which they relate? - ✔ ✔
false
Balance sheet is what according to FRS 102 - ✔ ✔ Statement of
Financial Position
does the statement of financial position include a reconciliation
between opening and closing shareholders' funds - ✔ ✔ no
Bonus issue - no cash changing hands. So? - ✔ ✔ Decrease profit
and loss account reserve by the increase in the share capital account
Arrears - ✔ ✔ payment after the event
Product is developed in 20X2, launch date in 20X3 but there are a
number of advance orders already placed. What can/should I do? - ✔
✔ Capitalise the cost of development in the 20X2 accounts
capitalised amount should be amortised over the benefit period of the
expenditure
Purchased goodwill should be capitalised as an intangible asset - ✔ ✔
true
The price of a commodity is rising. Is the net realisable value of the
stock likely or unlikely to be lower than the cost value? - ✔ ✔
unlikely
What is the double entry to record an increase in the provision for
doubtful debts? - ✔ ✔ Dr Bad debts expense
Cr Provision for doubtful debts
Company has gone into liquidation and owes you money. Double
entry? - ✔ ✔ Dr Bad debts expense
Cr Debtors
What is the equation for the amount for bad debts expense to be
included in the profit and loss account? - ✔ ✔ Written off debts +
(closing provision - opening provision)
Received cash from a customer whose debt has previously been written
off. Double entry to record this amount? - ✔ ✔ Dr Cash
, Cr Bad debts expense
In a partnership, salaries are not... - ✔ ✔ an expense
Partner's drawings are deducted from their current accounts - ✔ ✔
true
interest on partner's capital account is taxed as if it were interest from
a bank - ✔ ✔ false
partner's capital accounts are classifies as creditors due after one year
in the balance sheet - ✔ ✔ false
New capital introduced by partners during the year must be disclosed
on the face of the balance sheet - ✔ ✔ false
What is the double entry for an interim dividend? - ✔ ✔ Dr Profit
and Loss account reserve
Cr Bank
Dividends are always included in the year in which they relate? - ✔ ✔
false
Balance sheet is what according to FRS 102 - ✔ ✔ Statement of
Financial Position
does the statement of financial position include a reconciliation
between opening and closing shareholders' funds - ✔ ✔ no
Bonus issue - no cash changing hands. So? - ✔ ✔ Decrease profit
and loss account reserve by the increase in the share capital account
Arrears - ✔ ✔ payment after the event
