1 of 20
As the bookkeeper to which side of the appropriate ledger account would you post a receipt of an amount as a loan already recorded in the Cash account? | Debit | | Credit |

0 out of 1
Incorrect. A debit to cash means a credit elsewhere.

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3 of 20
ItsaMadWorld plc has a financial year end at 31 March 2008. Rates expenses are paid annually in arrears. The dates payments are made are 30 September 2008, £1,200 and 30 September 2009, £1,440. The following profit and loss charge will be shown in its accounts at 31 March 2009: | Expense £1,300 | | Expense £1,320 | | Expense £1,340 | | Expense £1,440 |

0 out of 1
Incorrect. Correct answer is 1,320 = (6/12x1,200) + (6/12x1,440)

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4 of 20
The recognition that an organisation is distinct from its owners is a fair description of which concept? | duality | | separate valuation | | business entity | | objectivity |

0 out of 1
Your answer is incorrect. The correct answer is business entity

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6 of 20
A firm's trial balance.... | shows its financial position. | | establishes whether its accounting records are correct. | | lists all of the entries in its double-entry accounting records. | | is a list of all the balances brought down in its double-entry accounting records. |

0 out of 1
Your answer is incorrect. The correct answer is a trial balance shows a list of all the balances brought down in its double-entry accounting records

Question
8 of 20
Which of the following will occur if an adjusting entry to record an accrued but unrecorded expense is NOT made? | Both expenses and liabilities will be understated. | | Both expenses and liabilities will be overstated. | | Expenses will be understated, but liabilities will be overstated. | | Liabilities will be understated, but expenses will be