accounting

Question 1

GST paid

Answer 1

expense, debit, you’re paying them

Question 2

going concern assumptions

Answer 2

records of transactions that occur over several years

Question 3

currents assets examples

Answer 3

cash, accounts recievable, inventory

Question 4

business structures

Answer 4

sole trader, partnership, private company, franchise, not for profit

Question 5

partnership

Answer 5

ABN, GST, TFN, business name, partnership act 1895, partnership agreement

Question 6

GST collected

Answer 6

income, credit, they owe them

Question 7

non current assets

Answer 7

turn into money for longer than 12 months

Question 8

non current assets examples

Answer 8

vehicle, property, machinery

Question 9

current assets

Answer 9

turn into income within 12 months

Question 10

non current liabilities

Answer 10

committed for longer than 12 months

Question 11

non current liabilities examples

Answer 11

long term loan, mortgage

Question 12

current liabilities

Answer 12

due with 12 months

Question 13

current liabilities examples

Answer 13

overdraft, accounts payable, short term loan

Question 14

accounting entity

Answer 14

personal transactions are separate from business no matter the structure

Question 15

materiality

Answer 15

general purpose financial reports (GPFR), balance sheets, income and cash flow statements, significant items are recorded in financial reports

Question 16

monetary assumptions

Answer 16

only items that can be expressed in dollar terms are included in accounting records

Question 17

historical cost

Answer 17

assets are valued at their original cost, shown on balance sheet

Question 18

limitations of internal control

Answer 18

staff size, human error, conspiring, unusual transactions, overriding management, cost effective, lack of reviewing

Question 19

accounting period assumptions

Answer 19

life of business is divided into equal reporting periods. at the end all reports must be filled

Question 20

sizes of accounting assumptions

Answer 20

1 week, 1 month, 3 months, 1 year. once one is chosen is must remain

Question 21

accounting cycle

Answer 21

source document, journal, ledger, trial balance, income statement, balance sheet

Question 22

errors not detected by TB

Answer 22

wrong amount in both accounts, recorded more than once, left out, wrong account

Question 23

errors detected by TB

Answer 23

missing D or C in 1 account, wrong amount in 1 account, wrong D or C, wrong adding up

Question 24

discount recieved

Answer 24

income

Question 25

discount allowed

Answer 25

expense

Question 26

internal control

Answer 26

cash, inventory, accounts payable, accounts recievable, non current assets

Question 27

cash

Answer 27

safe, bank drop, records

Question 28

inventory

Answer 28

locks, security, records

Question 29

accounts recievable IC

Answer 29

EFT, segregated jobs, chase overdues

Question 30

accounts payable IC

Answer 30

EFT

Question 31

income

Answer 31

commission, fees, discount recieved, sales

Question 32

expense

Answer 32

drawings, rent, insurance, discount allowed, wages, sales returns

Question 33

GST exclusive

Answer 33

x0.1 then +

Question 34

GST inclusive

Answer 34

/11 then - then +

Question 35

risk assessment

Answer 35

financial security, job history, credit history

Question 36

sources of finance

Answer 36

internal, external

Question 37

internal

Answer 37

savings, partnerships, selling assets

Question 38

external

Answer 38

loans, overdraft, government funding

Question 39

soletrader

Answer 39

ABN, GST, TFN, business name

Question 40

private company

Answer 40

ABN, TFN, GST, pty ltd, business name, shareholders

Question 41

not for profit

Answer 41

ABN, business name

Question 42

franchise

Answer 42

ABN, GST, TFN, business name, royalties