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Dashboard / My papers / ACCTN102-22B (HAM) / Week 9 - starting 12 September: Cash Control & Reporting

/ Chapter 6 Online Test

Started on Wednesday, 27 July 2022, 3:19 PM

State Finished
Completed on Wednesday, 27 July 2022, 3:26 PM
Time taken 6 mins 59 secs
Marks 9.00/10.00
Grade 90.00 out of 100.00

Question 1

Correct

Mark 1.00 out of 1.00

The effect of the cash based accounting transactions is recognised in the accounting period in which

Select one:
a. all revenue have been recognised

b. cash has been received or paid

c. all expenses have been recognised

d. credit transactions have been recognised

Your answer is correct.

Question 2

Correct

Mark 1.00 out of 1.00

_________ provides information relating to the resources of the business available to generate the income.

Select one:
a. Statement of Cashflows

b. Statement of Financial Performance

c. Statement of Financial Position

d. Statement of Movements in Equity

Your answer is correct.

Question 3

Correct

Mark 1.00 out of 1.00

On 25 March 2XX1, Mitz Parts Ltd, an auto dismantling business received $175 from a customer for a second hand CV joint.
Due to the shortage of such parts Mitz Parts Ltd promised to deliver the CV joint in 2 months time to the customer. The
balance date for Mitz Parts Ltd is on 31 March every year. The type of balance day adjustment necessary for this transaction
is:

Select one:
a. Accrued Revenue

b. Depreciation

c. Unearned revenue

d. Prepayment

Your answer is correct.

Question 4

Incorrect

Mark 0.00 out of 1.00

The main purpose of reversing entries is to:

Select one:
a. correct errors made in the previous accounting period

b. Remove the depreciation recorded on assets in the previous period

c. conceal incorrect entries made in the previous accounting periods 

d. cancel the temporary asset and liability accounts created on the balance day of the previous accounting period

Your answer is incorrect.

Question 5

Correct

Mark 1.00 out of 1.00

_________ are payments made by a business in one accounting period for the benefits to accrue in the future accounting
periods.

Select one:
a. prepaid expenses

b. accrued expenses

c. Unearned revenues

d. accrued revenues

Your answer is correct.

Question 6

Correct

Mark 1.00 out of 1.00

According to the NZ Framework which of the following is not an essential characteristic of liabilities:

Select one:
a. there must be a present obligation, which has not yet been satisfied

b. there must be adverse financial consequences for the entity

c. the event which gives rise to the obligation to sacrifice service potential must have occurred

d. the transaction which gives rise to the obligation to sacrifice potential or future economic benefit should not have 
occurred

Your answer is correct.

Question 7

Correct

Mark 1.00 out of 1.00

The ________ concept requires that profit be measured by matching revenue for the period with expenses incurred in earning
that revenue.

Select one:
a. Period

b. Matching

c. Revenue Recognition

d. Cash Basis

Your answer is correct.

Question 8

Correct

Mark 1.00 out of 1.00

For external reporting purposes, companies with certain exceptions are required to file audited financial statements with the
_________________ on a/an ____________basis

Select one:
a. Registrar of Companies; quarterly

b. Registrar of Companies; annual

c. IRD; annual

d. IRD; monthly

Your answer is correct.

Question 9

Correct

Mark 1.00 out of 1.00

Which one of the following is not a balance day adjustment?

Select one:
a. depreciation on asset at year end

b. cash sales for the accounting period

c. accrued revenue for the period

d. income received in advance for next period

Your answer is correct.

Question 10

Correct

Mark 1.00 out of 1.00

An asset shall be recognised in the statement of financial position when and only when it is _________ that the service
potential or future economic benefits embodied in the asset will eventuate and the asset possesses a cost or other value that
can be measured with __________.

Select one:
a. probable; confidence

b. unlikely; reliability

c. probable; reliability

d. unlikely; confidence

Your answer is correct.

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