On 31 March Lucian was owed commission.
How would this commission be shown in Lucian's statement of financial position on 31 March?
as accrued income in current assets
as accrued income in current liabilities
as prepaid income in current assets
as prepaid income in current liabilities
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Donovan made a loan to one of his employees. At the end of the financial year Donovan was owed $130 interest on the loan. He recorded this in his financial statements.
Where was the interest on the loan recorded in Donovan's statement of financial position, and how did it affect his profit for the year?
statement of financial position | profit for the year | |
|---|---|---|
A | current assets | decreased |
B | current assets | increased |
C | current liabilities | decreased |
D | current liabilities | increased |
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A business's books contained the following ledger account.
rent receivable account
$ | $ | ||||
Dec 31 | income statement | 4 200 | Jan 1 | balance b/d | 150 |
Dec 31 | bank | 3 850 | |||
| balance c/d | 200 | |||
4 200 | 4 200 |
What does the balance of $200 on 31 March represent?
accrued expense
accrued income
prepaid expense
prepaid income
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Tom is a trader. The following ledger account appeared in his books.
Rates account
$ | $ | ||||
June 30 | Bank | 3 120 | Jan 1 | Balance b/d | 240 |
Dec 31 | Income statement | 2 770 | |||
| Dec 31 | Balance c/d | 110 | ||
3 120 | 3 120 |
Which statement is correct?
Rates are accrued at both the start and the end of the year.
Rates are accrued at the start of the year and prepaid at the end of the year.
Rates are prepaid at both the start and the end of the year.
Rates are prepaid at the start of the year and accrued at the end of the year.
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A business provided the following information
$ | |
trade payables | 4 800 |
trade receivables | 3 200 |
bank overdraft | 600 |
long-term loan | 13 000 |
accrued wages | 2 300 |
rent receivable prepaid | 450 |
prepaid insurance | 650 |
What was the total of the current liabilities?
$6750
$8150
$20 550
$20 700
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Salima pays her insurance premium on 1 January each year for the following 12 months.
She made the following payments for insurance.
$ | |
1 January 2023 | 1 740 |
1 January 2024 | 1 860 |
How much did Salima include for insurance in her income statement for the year ended 31 March 2024?
$1 740
$1 770
$1 860
$1 980
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Alfred owns a business providing professional consulting services. He provided the following information for the financial year ended 31 December 2023.
$ | |
fees owed by clients on 1 January 2023 | $1 900 |
fees received by clients during the year ended 31 December 2023 | $35 200 |
fees owed by clients on 31 December 2023 | $3 100 |
What was the amount of fees showed in Alfred's income statement for the year ended 31 December 2023?
$34 000
$35 200
$36 400
$40 200
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The following ledger account appeared in Brian's books.
Rent receivable account
$ | $ | ||||
31 March 2024 | balance c/d | 200 | 1 April 2023 | balance b/d | 500 |
31 March 2024 | bank | 4 500 |
Which one of the following entries should me made for rent receivable in the income statement for the year ended 31 March 2024?
$4200 credit
$4200 debit
$4800 credit
$4800 debit
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At the end of his financial year on 31 October 2024, Alex had prepaid towards his phone bill.
How will this appear in Alex's statement of financial position and phone account at 31 October 2024?
statement of financial position | phone account | |
|---|---|---|
A | current asset | credit balance carried down |
B | current asset | debit balance carried down |
C | current liability | credit balance carried down |
D | current liability | debit balance carried down |
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The annual rental income from one of a business's tenants, Basil, is $5400. At the start of the year Basil had accrued rent of $300. He owed two months' rent at the end of the year.
How much rent did the business receive from Basil during the year?
$4200
$4800
$6000
$6600
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At 1 January 2023 a business's books showed a credit balance of $200 on the electricity account. Payments made during the year totalled $4100. At 31 December 2023, the business had used a further $1200 of electricity since the last invoice had been paid.
What is the charge to the income statement for electricity for the year 2023?
$2700
$5100
$5300
$5500
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Cai's financial year ends on 31 August 2024. He provided the following information.
$ | |
on 1 September 2023 rent receivable accrued |
530 |
during the year ended 31 August 2024 rent received |
7 500 |
on 31 August 2024 rent received in advance |
270 |
Which journal entry would be made on 31 August 2024?
debit $ | credit $ | ||
|---|---|---|---|
A | income statement rent receivable | 6700 |
6700 |
B | income statement rent receivable | 7240 |
7240 |
C | rent receivable income statement | 6700 |
6700 |
D | rent receivable income statement | 7240 |
7240 |
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