Principles of Accounting - ATT - CBE Exam Questions
With Correct Answers 100% Verified
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
With Correct Answers 100% Verified
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
