Accounting Quiz or Test Your Accounting Knowledge On Discounts, Bad Debts and Provisions

July 21st, 2010 / No comments yet

Refresh or test your accounting knowledge by answering the following questions on Discounts, Bad Debts and Provisions

QUESTIONS:

1.0 Distinguish between trade discount, cash discount and settlement discount

2.0 How is cash discount treated for accounting purposes?

3.0 How are bad debts treated for accounting purposes?

4.0 A decrease in the provision for doubtful debts is recorded as an expense in the income statement – true or false

5.0 How is a provision for doubtful debts disclosed in the balance sheet?

Accounting Quiz or Test Your Knowledge On The Cost of Goods Sold, Accruals and Prepayments

July 21st, 2010 / No comments yet

Refresh or test your accounting knowledge on Cost of goods sold,accruals and prepayments:

QUESTIONS:1.0 Give the formula for calculating the cost of goods sold?

2.0 How is the cost of carriage inwards treated for accounting purposes?

3.0 How is a reduction in stock value treated for accounting purpose?

4.0 Define accruals and prepayments