ATT - Accounting Exam Questions With Correct
Answers 100% Verified
Accrual Basis of Accounting - CORRECT ANSWER -The principle of reporting income when it is
earned and expenses when they are incurred, not when they are paid or received
Debit side - CORRECT ANSWER -Expenses
Assets
Drawings
Credit side - CORRECT ANSWER -Liabilities
Income
Capital
What is the accounting equation for profit? - CORRECT ANSWER -Profit = Closing net assets +
Drawings - Capital - Opening net assets
Where are income and expenses listed in financial statements? - CORRECT ANSWER -Profit and
Loss Account
Where are assets and liabilities listed in financial statements? - CORRECT ANSWER -Balance
Sheet
What are the main sections on a profit and loss account? - CORRECT ANSWER -Sales
Less: Cost of sales
Gross Profit
, Less: Expenses
Net Profit
What are the main sections of a balance sheet? - CORRECT ANSWER -Fixed Assets
Current Assets
Less: Creditors
Net Assets
What are the components proprietor's funds? - CORRECT ANSWER -Capital
Profit
Less: Drawings
What is an accrued income?
Which side will it go on? - CORRECT ANSWER -Income that is earned but not yet received.
Debit side, as it's an asset.
What is deferred income?
Which side will it go on? - CORRECT ANSWER -Income that is received but not yet earned.
Credit side, as it's a liability.
What's the equation for cost of sales? - CORRECT ANSWER -Cost of sales = Opening stock +
Purchases - Closing stock
Answers 100% Verified
Accrual Basis of Accounting - CORRECT ANSWER -The principle of reporting income when it is
earned and expenses when they are incurred, not when they are paid or received
Debit side - CORRECT ANSWER -Expenses
Assets
Drawings
Credit side - CORRECT ANSWER -Liabilities
Income
Capital
What is the accounting equation for profit? - CORRECT ANSWER -Profit = Closing net assets +
Drawings - Capital - Opening net assets
Where are income and expenses listed in financial statements? - CORRECT ANSWER -Profit and
Loss Account
Where are assets and liabilities listed in financial statements? - CORRECT ANSWER -Balance
Sheet
What are the main sections on a profit and loss account? - CORRECT ANSWER -Sales
Less: Cost of sales
Gross Profit
, Less: Expenses
Net Profit
What are the main sections of a balance sheet? - CORRECT ANSWER -Fixed Assets
Current Assets
Less: Creditors
Net Assets
What are the components proprietor's funds? - CORRECT ANSWER -Capital
Profit
Less: Drawings
What is an accrued income?
Which side will it go on? - CORRECT ANSWER -Income that is earned but not yet received.
Debit side, as it's an asset.
What is deferred income?
Which side will it go on? - CORRECT ANSWER -Income that is received but not yet earned.
Credit side, as it's a liability.
What's the equation for cost of sales? - CORRECT ANSWER -Cost of sales = Opening stock +
Purchases - Closing stock
