Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 27)
1
In a partnership, interest on capital is typically treated as:
2
What is a key feature of a partnership?
Answer(A)
Unlimited liability for partners.
3
In the balance sheet of a club, how are outstanding subscriptions treated?
4
What information can be found in the 'Statement of Financial Position'?
5
Which of the following is considered a selling expense?
6
How is the distribution of net profit recorded?
7
What is the role of a trial balance?
Answer(C)
To ensure the debit and credit sides of the ledger are balanced.
8
What is the purpose of having skills or ideas in the business?
Answer(A)
To help with the decision making process
9
What is the impact on the accounting equation when recording the usage of office supplies?
Answer(B)
Decrease assets and increase expenses.
10
What does 'depreciation' represent?
Answer(B)
The allocation of an asset's cost over its useful life.
11
What financial statement is most helpful in determining a partnership's ability to pay its short-term debts?
12
When a business provides services on credit, but has not yet received cash, how should this be reflected in the accounting records?
Answer(B)
Debit accounts receivable, credit service revenue
13
What is often required from the partner to make the partnership successful?
