Igcse Accounting Prepayments Accruals Questions Answers
Igcse Accounting Prepayments Accruals Questions Answers
Igcse Accounting Prepayments Accruals Questions Answers
El-Hoss
IGCSE
Accounting
Prepayments
and Accruals
www.igcseaccounts.com
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Answer:
3
Answer:
Answer: (a) Below/after gross profit/after trading account/(on credit side) as other income.
Profit and loss section/(debit side) as an expense
(b) Accruals/matching
Prudence
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$ $
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Answer:
Answer:
6
Answer: Revenue for the year is matched against the costs of the same period
Example -
Either Insurance prepaid at year-end was deducted
Or Commission receivable outstanding at year-end was added
Or Amount owing from clients at year-end was added
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Answer: The cost of the non-current asset and the revenues arising from its use are matched in an
accounting period.
OR
The cost of the non-current asset is spread over its useful life.
Answer: The loss arising from the damage is recorded in the same year as the damage occurred.
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$ $ $
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Answer:
Answer: Either --The expenses of the year were matched against the revenue of the same period.
Or
Only the expenses for the year were included in the income statement.
Example – Either Commission receivable outstanding was added.
Or Loan interest outstanding was added.
Or Depreciation for the year was included.
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Answer:
11
Answer: Either ---
The sales for which a business is unlikely to be paid are regarded as an expense of the year
in which those sales are made.
The provision for doubtful debts is an expense those debts are incurred.
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$ $ $
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Answer: (a)
(b) Revenue for the year is matched against the costs of the same period.
Example:
Either -- The loan interest was adjusted for the outstanding amount.
Or -- The loss in value of non-current assets in the year was included.
Or -- A provision for doubtful debts was created.
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