Ch03 Tb Hoggetta8e

Testbank  to accompany

Accounting 8th Edition  by John Hoggett, Lew Edwards, John Medlin, Matthew Tilling Tilling and Evelyn Hogg

Prepared by

Barbara Burns

© John Wiley  !ons "ustralia, Ltd #$%#

Testbank to accompany Accounting 8e

Chapter 3: Recording transactions Multiple Choice

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The tran The transac sacti tions ons below below are are 'rom 'rom the record recordss o' Templ emplest estow owee (ictu (icture re )ram )ramer ers, s, the the internal transaction is* +ash sa sale (aid monthly rent on premises premise s +redit sa sale ecorde ecorded d deprecia depreciation tion on on shop 'i-tur 'i-tures es and 'itt 'ittings ings

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Whic Which h o' o' the these se even events ts woul would d not not be reco record rded ed by acco accoun unta tant nts1 s1 eceived an an or order 'r 'rom a customer  The owner paid his daughter 2s school 'ees 'rom the business ban3 account ac count +redit sale /epre /epreci ciat ation ion on mo motor tor vehic vehicle less calcu calcula lated ted at the the end o' the the 'ir 'irm2 m2ss 'inan 'inancia ciall year year&&

".!WE " !ection 0&% 0& a&  b& c& d&

The even The eventt that that may may be be recor recorded ded in a 'irm2 'irm2ss sust sustai ainab nabil ilit ity y repor reportt but but not not in in thei theirr 'inancial report is* Loan Lo an repa repaym ymen ents ts (ayments made to employees under the !uperannuation !uperannuatio n 4uarantee Legislation (lann (lanned ed e-pen e-pendit ditur uree on waste waste dispo disposal sal /epreciation /epreciation charged charged on Environmental Environmental 5''icers 5''icers motor vehicle

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The sour sourcce do docum umen entt 'o 'or a cash ash sa sale co could uld be be a* a* (urc urchas hase orde order  r  +redit card slip +he7ue butt +redi edit not note

".!WE B !ection 0&# 8& Thee true Th true stat statem emen entt con conce cern rnin ing g the the acco accoun unti ting ng peri period od is* is* a& The lengt length h o' the accoun accounting ting period period varies varies with with the the needs needs o' users& users&  b& The accountin accounting g period originates originates 'rom the accounting accounting e7uation e7uation c& "ccounti "ccounting ng periods periods are are hardly hardly ever ever shorter shorter than than 9 months months

© John Wiley and !ons "ustralia, Ltd #$%# %&#

Chapter 3: Recording transactions

d& The accounting accounting period period is the se7uence se7uence o' events events 'rom transactions transactions through through to 'inancia 'inanciall statements ".!WE " !ection 0&0 9& :n order order to to prov provid idee tim timel ely y in'o in'orm rmat ation ion 'or 'or deci decisio sion;m n;ma3 a3ing ing the the li'e li'e o' o' the the busi busines nesss is divided into arbitrary time periods o' e7ual length called* a& Li'e cy cycles  b& 5perating cycles c& Months d& "cco "ccoun unti ting ng peri period odss ".!WE / !ection 0&0