2.5 - Balance Day Adjustments [basic Level]

10 Questions | Total Attempts: 133

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2.5 - Balance Day Adjustments [basic Level]

Kia Ora :) This is the Basic Level Quiz in regards to Balance Day Adjustments for NCEA Level Two. When you feel that you are ready, please also take the Intermediate and Expert Level Quiz. Thank-you for using BroSir. Com :)


Questions and Answers
  • 1. 
    Driver's Wages Owing.
    • A. 

      Accrued Income

    • B. 

      Accrued Expense

    • C. 

      Income in Advance

    • D. 

      Prepayments

    • E. 

      Allowance for Doubtful Debts

    • F. 

      Depreciation

    • G. 

      Bad Debts

  • 2. 
    Invoice on Hand for Electricity.
    • A. 

      Accrued Income

    • B. 

      Accrued Expense

    • C. 

      Income in Advance

    • D. 

      Prepayments

    • E. 

      Allowance for Doubtful Debts

    • F. 

      Depreciation

    • G. 

      Bad Debts

  • 3. 
    Dividends owing on shares we have invested in another company.
    • A. 

      Accrued Income

    • B. 

      Accrued Expense

    • C. 

      Income in Advance

    • D. 

      Prepayments

    • E. 

      Allowance for Doubtful Debts

    • F. 

      Depreciation

    • G. 

      Bad Debts

  • 4. 
    The business has received payment for work that is scheduled to commence next year.
    • A. 

      Accrued Income

    • B. 

      Accrued Expense

    • C. 

      Income in Advance

    • D. 

      Prepayments

    • E. 

      Allowance for Doubtful Debts

    • F. 

      Depreciation

    • G. 

      Bad Debts

  • 5. 
    The business has paid for an expense [Insurance] before it has been used by the business.
    • A. 

      Accrued Income

    • B. 

      Accrued Expense

    • C. 

      Income in Advance

    • D. 

      Prepayments

    • E. 

      Allowance for Doubtful Debts

    • F. 

      Depreciation

    • G. 

      Bad Debts

  • 6. 
    The business has had to write off some of its customers' accounts, because it knows these cutomers will not pay their outstanding balances [debt].
    • A. 

      Accrued Income

    • B. 

      Accrued Expense

    • C. 

      Income in Advance

    • D. 

      Prepayments

    • E. 

      Allowance for Doubtful Debts

    • F. 

      Depreciation

    • G. 

      Bad Debts

  • 7. 
    The business knows that based on the history of Accounts Receivable that some customers might not pay their accounts. There is a possibility that the customer will pay their debt, but as Accountants we have to be conservative. Therefore the business will create an....
    • A. 

      Accrued Income

    • B. 

      Accrued Expense

    • C. 

      Income in Advance

    • D. 

      Prepayments

    • E. 

      Allowance for Doubtful Debts

    • F. 

      Depreciation

    • G. 

      Bad Debts

  • 8. 
    Our non-current assets will incur wear and tear over their life with the business. This is known as...
    • A. 

      Accrued Income

    • B. 

      Accrued Expense

    • C. 

      Income in Advance

    • D. 

      Prepayments

    • E. 

      Allowance for Doubtful Debts

    • F. 

      Depreciation

    • G. 

      Bad Debts

  • 9. 
    Interest is owing on the loan that we have taken out with the bank...
    • A. 

      Accrued Income

    • B. 

      Accrued Expense

    • C. 

      Income in Advance

    • D. 

      Prepayments

    • E. 

      Allowance for Doubtful Debts

    • F. 

      Depreciation

    • G. 

      Bad Debts

  • 10. 
    Interest is owing on the term deposit that we have put into the bank...
    • A. 

      Accrued Income

    • B. 

      Accrued Expense

    • C. 

      Income in Advance

    • D. 

      Prepayments

    • E. 

      Allowance for Doubtful Debts

    • F. 

      Depreciation

    • G. 

      Bad Debts