Reference no: EM132588233

Question 1. Accrued expense are Generally not due to be paid until a future period (true or false)

Question 2. Accrued income are earned in this period but not yet received (true or false)

Question 3. Find out value of account receivable from following Cash N$48,000 account payable N$33,000 office equipment N$21,000 owner equity N$77,000?

Select one:

a. N$110,000,

b. N$15,000,

c. N$21,000,

d. N$41,000

Question 4. Suppose a hotel has an Accounts Receivable balance of N$50,000 at the end of the year and, based on experience, estimates that 2% of this amount will be uncollectible. Which of the following statements is true?

Select one:

a. Allowance for Doubtful Accounts would be added to Accounts Receivable on the balance sheet at year end.

b. Allowance for Doubtful Accounts would be credited for N$1,000 in an adjusting entry at year end.

c. Bad Debts Expense would be debited for N$500 in an adjusting entry at year end.

d. Bad Debts Expense would be credited for N$1,000 in an adjusting entry at year end

e. Allowance for Doubtful Accounts would be debited for N$1,000 in an adjusting entry at year end

Question 5. The profit of a business during an accounting period is equal to:

Select one:

a. total cash receipts less total cash payments

b. total revenues less total expenses

c. total cash receipts less total expenses

d. total revenues less total cash payments

Question 6. The following are extracts from an income statement for the year ended 31 December 2019

December 2019                 N$000

Sales revenue                  10,000

Cost of sales                   (8,500)

Distribution costs                (300)

Administrative expenses        (200)

Net interest paid              (150)

Taxation                       (500)

Dividends                    (100)

1. The gross profit is

2. The operating profit is

3. The retained earnings are

4. The profit after tax is

5. The profit before tax is