Prepaid Expenses – NBC Institute

FA – Nov 2021 – L1 – SA – Q18 – Accruals and prepayments

This question identifies the fundamental accounting concept related to prepaid and accrued expenses.

Question

Adjustments are made for prepaid and accrued expenses in order to comply with which fundamental accounting concept?
A. Matching
B. Prudency
C. Aggregation
D. Materiality
E. Consistency

Answer

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Tags: Accrued Expenses, Matching Concept, Multiple Choice, Prepaid Expenses
Level: Level 1

Topic: Accruals and prepayments
Series: NOV 2021

FA – May 2023 – L1 – SA – Q15 – Accounting Treatment for Accruals and Prepayments

Identifying the accounting concept that justifies adjustments for prepaid and accrued expenses.

Question

In the process of drawing up financial statements, adjustments are made for prepaid expenses and accrued expenses in order to comply with which of the following fundamental accounting concepts?

A. Matching

B. Prudency

C. Aggregation

D. Duality

E. Consistency

Answer

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Tags: Accounting Concepts, Accruals, Prepaid Expenses
Level: Level 1

Topic: Accruals and Prepayments
Series: MAY 2023

FA – MAY 2015 – L1 – SB – Q2 – Financial Statements Preparation

Prepare an extended trial balance and adjustments for Salfo Enterprises based on ledger balances.

Question

The following is a list of balances extracted from the ledger of Salfo Enterprises:

N
Inventory on 1 January 2013	30,600
Revenue	245,340
Purchases	160,200
Salaries and wages	52,110
Furniture and fittings	92,500
Office expenses	16,200
Trade receivables	50,400
Trade payables	22,400
Cash in hand and at bank	6,230
Drawings	15,500
Capital	156,000

Additional information:

Inventory on 31 December 2013: N38,000
Prepaid office expenses: N2,300
Accrued wages: N1,500
Depreciation is to be charged on furniture and fittings at 10% per annum on cost.

Required: a. Prepare the initial trial balance. (4 Marks)
b. Record the necessary adjustments. (8 Marks)
c. Prepare the adjusted trial balance. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Adjustments, Depreciation, Financial Statements, Prepaid Expenses, Trial Balance
Level: Level 1

FA – Nov 2021 – L1 – SA – Q18 – Accruals and prepayments

This question identifies the fundamental accounting concept related to prepaid and accrued expenses.

Question

Adjustments are made for prepaid and accrued expenses in order to comply with which fundamental accounting concept?
A. Matching
B. Prudency
C. Aggregation
D. Materiality
E. Consistency

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accrued Expenses, Matching Concept, Multiple Choice, Prepaid Expenses
Level: Level 1

Topic: Accruals and prepayments
Series: NOV 2021

FA – May 2023 – L1 – SA – Q15 – Accounting Treatment for Accruals and Prepayments

Identifying the accounting concept that justifies adjustments for prepaid and accrued expenses.

Question

In the process of drawing up financial statements, adjustments are made for prepaid expenses and accrued expenses in order to comply with which of the following fundamental accounting concepts?

A. Matching

B. Prudency

C. Aggregation

D. Duality

E. Consistency

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accruals, Prepaid Expenses
Level: Level 1

Topic: Accruals and Prepayments
Series: MAY 2023

FA – MAY 2015 – L1 – SB – Q2 – Financial Statements Preparation

Prepare an extended trial balance and adjustments for Salfo Enterprises based on ledger balances.

Question

The following is a list of balances extracted from the ledger of Salfo Enterprises:

N
Inventory on 1 January 2013	30,600
Revenue	245,340
Purchases	160,200
Salaries and wages	52,110
Furniture and fittings	92,500
Office expenses	16,200
Trade receivables	50,400
Trade payables	22,400
Cash in hand and at bank	6,230
Drawings	15,500
Capital	156,000

Additional information:

Inventory on 31 December 2013: N38,000
Prepaid office expenses: N2,300
Accrued wages: N1,500
Depreciation is to be charged on furniture and fittings at 10% per annum on cost.

Required: a. Prepare the initial trial balance. (4 Marks)
b. Record the necessary adjustments. (8 Marks)
c. Prepare the adjusted trial balance. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Adjustments, Depreciation, Financial Statements, Prepaid Expenses, Trial Balance
Level: Level 1

Question Tag: Prepaid Expenses

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FA – Nov 2021 – L1 – SA – Q18 – Accruals and prepayments

This question identifies the fundamental accounting concept related to prepaid and accrued expenses.

FA – May 2023 – L1 – SA – Q15 – Accounting Treatment for Accruals and Prepayments

Identifying the accounting concept that justifies adjustments for prepaid and accrued expenses.

FA – MAY 2015 – L1 – SB – Q2 – Financial Statements Preparation

Prepare an extended trial balance and adjustments for Salfo Enterprises based on ledger balances.

FA – Nov 2021 – L1 – SA – Q18 – Accruals and prepayments

This question identifies the fundamental accounting concept related to prepaid and accrued expenses.

FA – May 2023 – L1 – SA – Q15 – Accounting Treatment for Accruals and Prepayments

Identifying the accounting concept that justifies adjustments for prepaid and accrued expenses.

FA – MAY 2015 – L1 – SB – Q2 – Financial Statements Preparation

Prepare an extended trial balance and adjustments for Salfo Enterprises based on ledger balances.

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FA – Nov 2021 – L1 – SA – Q18 – Accruals and prepayments

This question identifies the fundamental accounting concept related to prepaid and accrued expenses.

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FA – May 2023 – L1 – SA – Q15 – Accounting Treatment for Accruals and Prepayments

Identifying the accounting concept that justifies adjustments for prepaid and accrued expenses.

You're reporting an error for "FA – May 2023 – L1 – SA – Q15 – Accounting Treatment for Accruals and Prepayments"

FA – MAY 2015 – L1 – SB – Q2 – Financial Statements Preparation

Prepare an extended trial balance and adjustments for Salfo Enterprises based on ledger balances.

You're reporting an error for "FA – MAY 2015 – L1 – SB – Q2 – Financial Statements Preparation"

FA – Nov 2021 – L1 – SA – Q18 – Accruals and prepayments

This question identifies the fundamental accounting concept related to prepaid and accrued expenses.

You're reporting an error for "FA – Nov 2021 – L1 – SA – Q18 – Accruals and prepayments"

FA – May 2023 – L1 – SA – Q15 – Accounting Treatment for Accruals and Prepayments

Identifying the accounting concept that justifies adjustments for prepaid and accrued expenses.

You're reporting an error for "FA – May 2023 – L1 – SA – Q15 – Accounting Treatment for Accruals and Prepayments"

FA – MAY 2015 – L1 – SB – Q2 – Financial Statements Preparation

Prepare an extended trial balance and adjustments for Salfo Enterprises based on ledger balances.

You're reporting an error for "FA – MAY 2015 – L1 – SB – Q2 – Financial Statements Preparation"

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