Topic: Accruals and Prepayments

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FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

This question calculates the total rent expense to be charged to the profit or loss statement for the year.

Question

The information below relates to the accounting period ended December 31, 2013.
N
Prepaid rent brought forward: 22,000
Rent paid during the period: 216,000
Accrued rent carried forward: 26,000

In line with the accrual concept, what should be the amount of rent to be charged to the statement of profit or loss in the year ended December 31, 2013?
A. N264,000
B. N242,000
C. N238,000
D. N216,000
E. N48,000

Answer

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Tags: Accounting principles, Accruals, Rent Expense
Level: Level 1

Topic: Accruals and Prepayments
Series: NOV 2015

FA – May 2021 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

Determine the classification of rent received in advance.

Question

Rent received in advance is:

i. Credit balance in rent account
ii. Current asset in the statement of financial position
iii. Liability in the statement of financial position
iv. Debit balance in the rent account

A. I and II
B. I and III
C. II and III
D. II and IV
E. III and IV

Answer

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Tags: Accruals, Financial Statements, Prepayments, Rent
Level: Level 1

Topic: Accruals and Prepayments
Series: MAY 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 2017 – L1 – SB – Q6b – Accounting Treatment for Accruals and Prepayments

Prepare the insurance account for 2016 and state the amount for profit or loss and disclosure in financial statements.

Question

Abode Limited has an insurance policy covering April 1 to March 31 of the following year, but its accounting period ends on December 31 each year. The insurance is paid on April 1 each year, and the record of payments for the two years, 2015 and 2016, were as follows:

2015: ₦64,000
2016: ₦84,000

Required:

Show the insurance account for 2016 and state the amount to be charged in the statement of profit or loss and the disclosure in the statement of financial position as at December 31, 2016.

Answer

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Tags: Accruals, Financial Statements, Insurance Account, Prepayments, Profit or Loss
Level: Level 1

Topic: Accruals and Prepayments
Series: MAY 2017

FA – May 2017 – L1 – SA – Q10 – Accounting Treatment for Accruals and Prepayments

Concerns the treatment of rent received for 12 months over two financial periods.

Question

On June 1, 2015, Nkiwe Enterprises received a rent of N240,000 for 12 months to May 31, 2016. The reporting date of Nkiwe is December 31. What are the entries in the statement of profit or loss for the year ended, and statement of financial position as at, December 31, 2015?

Profit or loss Statement of financial position
N N
A. 100,000 income 140,000 liability
B. 100,000 expenses 140,000 asset
C. 140,000 income 100,000 liability
D. 140,000 expenses 100,000 asset
E. 240,000 income no entry

Answer

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Tags: Accrual Accounting, Financial Statements, Prepayments, Rent Treatment
Level: Level 1

Topic: Accruals and Prepayments
Series: MAY 2017

FA – Nov 2019 – L1 – SA – Q17 – Accounting Treatment for Accruals and Prepayments-

Identify where students' subscription received in advance is recognized in the statement of financial position.

Question

In which of the following segments of the statement of financial position of the Institute of Professional Accountants is students’ subscription received in advance recognized?

A. Non-current assets
B. Fictitious assets
C. Current assets
D. Current liabilities
E. Intangible assets

Answer

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Tags: Current Liabilities, Prepayments, Subscription
Level: Level 1

Topic: Accruals and Prepayments
Series: NOV 2019

FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

This question calculates the total rent expense to be charged to the profit or loss statement for the year.

Question

The information below relates to the accounting period ended December 31, 2013.
N
Prepaid rent brought forward: 22,000
Rent paid during the period: 216,000
Accrued rent carried forward: 26,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Accruals, Rent Expense
Level: Level 1

Topic: Accruals and Prepayments
Series: NOV 2015

FA – May 2021 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

Determine the classification of rent received in advance.

Question

Rent received in advance is:

i. Credit balance in rent account
ii. Current asset in the statement of financial position
iii. Liability in the statement of financial position
iv. Debit balance in the rent account

A. I and II
B. I and III
C. II and III
D. II and IV
E. III and IV

Answer

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Tags: Accruals, Financial Statements, Prepayments, Rent
Level: Level 1

Topic: Accruals and Prepayments
Series: MAY 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 2017 – L1 – SB – Q6b – Accounting Treatment for Accruals and Prepayments

Prepare the insurance account for 2016 and state the amount for profit or loss and disclosure in financial statements.

Question

2015: ₦64,000
2016: ₦84,000

Required:

Show the insurance account for 2016 and state the amount to be charged in the statement of profit or loss and the disclosure in the statement of financial position as at December 31, 2016.

Answer

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Tags: Accruals, Financial Statements, Insurance Account, Prepayments, Profit or Loss
Level: Level 1

Topic: Accruals and Prepayments
Series: MAY 2017

FA – May 2017 – L1 – SA – Q10 – Accounting Treatment for Accruals and Prepayments

Concerns the treatment of rent received for 12 months over two financial periods.

Question

Answer

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Tags: Accrual Accounting, Financial Statements, Prepayments, Rent Treatment
Level: Level 1

Topic: Accruals and Prepayments
Series: MAY 2017

FA – Nov 2019 – L1 – SA – Q17 – Accounting Treatment for Accruals and Prepayments-

Identify where students' subscription received in advance is recognized in the statement of financial position.

Question

In which of the following segments of the statement of financial position of the Institute of Professional Accountants is students’ subscription received in advance recognized?

A. Non-current assets
B. Fictitious assets
C. Current assets
D. Current liabilities
E. Intangible assets

Answer

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Tags: Current Liabilities, Prepayments, Subscription
Level: Level 1

Topic: Accruals and Prepayments
Series: NOV 2019

Topic: Accruals and Prepayments

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FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

This question calculates the total rent expense to be charged to the profit or loss statement for the year.

FA – May 2021 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

Determine the classification of rent received in advance.

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 2017 – L1 – SB – Q6b – Accounting Treatment for Accruals and Prepayments

Prepare the insurance account for 2016 and state the amount for profit or loss and disclosure in financial statements.

FA – May 2017 – L1 – SA – Q10 – Accounting Treatment for Accruals and Prepayments

Concerns the treatment of rent received for 12 months over two financial periods.

FA – Nov 2019 – L1 – SA – Q17 – Accounting Treatment for Accruals and Prepayments-

Identify where students' subscription received in advance is recognized in the statement of financial position.

FA – Nov 2015 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

This question calculates the total rent expense to be charged to the profit or loss statement for the year.

FA – May 2021 – L1 – SA – Q20 – Accounting Treatment for Accruals and Prepayments

Determine the classification of rent received in advance.

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 2017 – L1 – SB – Q6b – Accounting Treatment for Accruals and Prepayments

Prepare the insurance account for 2016 and state the amount for profit or loss and disclosure in financial statements.

FA – May 2017 – L1 – SA – Q10 – Accounting Treatment for Accruals and Prepayments

Concerns the treatment of rent received for 12 months over two financial periods.

FA – Nov 2019 – L1 – SA – Q17 – Accounting Treatment for Accruals and Prepayments-

Identify where students' subscription received in advance is recognized in the statement of financial position.

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