Adjustments and the matching principle quiz: N(A)-Level Principles of Accounts (SEAB 7086) quiz

Record expenses only when cash is paid

Match every asset to a liability

Charge expenses to the period in which they help to earn income

Always overstate profit

$4{,}600$

$400$

$5{,}000$

$5{,}400$

Current liability

Current asset

Non-current asset

Form of capital

$4{,}200$

$3{,}000$

$3{,}600$

$600$

Current liability

Non-current liability

Current asset

Expense in next year's statement only

$2{,}400$

$2{,}800$

$1{,}000$

$2{,}000$

A fixed percentage of the falling net book value

The same amount every year

Always zero after year one

A fixed percentage of the sales

$2{,}000$

$1{,}500$

$1{,}000$

$2{,}500$

Cost plus accumulated depreciation

The original cost of the asset

Cost minus accumulated depreciation

The selling price of the asset

Debit the customer $300$; credit irrecoverable debts $300$

Debit irrecoverable debts $300$; credit the customer $300$

Debit bank $300$; credit the customer $300$

Debit sales $300$; credit the customer $300$

Both rise by $400$

Neither changes

Profit rises and receivables fall

Both fall by $400$

$19{,}000$

$21{,}000$

$20{,}000$

$1{,}000$

To increase the value of the asset

To spread the cost of the asset over the years it is used

To record cash leaving the business

To pay tax to the government