Acc 1.3

Question 1

What are current assets?

Answer 1

Assets that will turn into cash in the next 12 months

Question 2

What are non current assets?

Answer 2

Assets that will not turn into cash in the next 12 months

Question 3

What are the three examples of non current assets?

Answer 3

1. Property, plant and equipment
2. Intangible assets
3. Investment assets

Question 4

What is a current liability?

Answer 4

A liability that the business has to pay in the next 12 months

Question 5

What is a non current liability?

Answer 5

A liability that the business will pay off in longer than 12 months

Question 6

What is in the Statement of Financial Position?

Answer 6

Assets - Liabilities. Then equity down below it and the PPA table

Question 7

What goes in the rows of the PPA table?

Answer 7

1. As at..
2. Cost
3. Less accumulated depreciation
4. Carrying amount

Question 8

What column do Assets, Other Income and Equity go in?

Answer 8

Second

Question 9

What column does Revenue go in?

Answer 9

Third

Question 10

What column do Liabilities and Expenses go in?

Answer 10

First

Question 11

Retail businesses main form of income is?

Answer 11

Sales

Question 12

Service businesses main form of income is?

Answer 12

Fee Recieved

Question 13

Revenue

Answer 13

main form of income

Question 14

Three types of expenses

Answer 14

1. DC
2. AE
3. FC

Question 15

What is DC?

Answer 15

those expenses that deal with the promotion, delivery and storage of the businesses service or inventory

Question 16

What is AE?

Answer 16

those everyday expenses, especially to do with the office

Question 17

What is FC?

Answer 17

interest payments

Question 18

What type of business has COGS?

Answer 18

Retail business

Question 19

What is included in COGS

Answer 19

Opening inventory
Purchases
Purchase returns
Cartage inwards/ customs duty
Freight inwards
Goods available for sale
(Closing inventory)
Cost of Goods sold
Gross Profit

Question 20

What does supplies used classify as?

Answer 20

Distribution Costs

Question 21

What is supplies on hand?

Answer 21

Current Asset

Question 22

Estimated life depreciaton

Answer 22

(Historical Cost - Residual value) divided estimated life = depreciation