Theory

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Theory

Attempt the ten questions below and then click 'Submit'.

Q1. An 'Adverse Variance' occurs when... *

10 points

An income or expenditure figure is worse than it was predicted/budgeted to be

An income or expenditure figure is better than it was predicted/budgeted to be

A predicted/budgeted income or expenditure item, does not actually occur

A predicted/budgeted income item, is omitted from the accounts

Q2. What is the purpose of a Cash Flow Statement? *

10 points

It shows the profit a business has made in the last year

It shows the total non-cash profit made by the business

It shows the difference between the cash entering and leaving the business

It shows the total cost of manufacturing our products

Q3. In a Club, what is a 'Special Purpose' Profit & Loss Account? *

10 points

An account that will not be shown to the members

An account that is only used for a small period of time

An account that is required by law

An account for a small portion of the club (e.g the Bar)

Q4. What is a 'Compensating Error'? *

10 points

When a figure is entered on the incorrect side of an account

When two errors in the accounts cancel each other out

When a figure is placed in the incorrect category of account (e.g an expense is recorded as an asset)

When a figure is left out of the accounts

Q5. What does 'IASB' stand for? *

10 points

The International Accounting Standards Board

The International Accounting Standards Body

The Irish Accounting Standards Board

The Irish Accounting Standards Body

Q6. Prudence and Consistency are examples of... *

10 points

Accounting Bases

Accounting Principles

Accounting Requirements

Accounting Concepts

Q7. An 'accrual' is... *

10 points

An expense that we have prepaid

An asset that has been fully depreciated

A payment that is due to someone

A liability that has been paid

Q8. A Private Limited Company is identified using the letters... *

10 points

PLC

Ltd

PLCo

PLim

Q9. In Farm Accounts, an 'EU Subsidy for Sheep' is recorded as... *

10 points

An Expense in the Income and Expenditure Account

A Fixed Asset in the Balance Sheet

A Long-Term Liability in the Balance Sheet

An item of Income in the Enterprise Analysis Account for Sheep

Q10. A business that has borrowed €20,000 of it's €100,000 start-up capital, would be said to have... *

10 points

High Gearing

No Gearing

Low Gearing

Balanced Gearing

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