Anh văn chuyên ngành 2 - AC11 (92)

If drawings is in the form of goods, it is necessary to show a……….from purchases in the trading caccount.

Drawings can be in the form of business facilities.

Drawings might also take the …….of goods for private use

In the balance sheet, the net profit is added to capital.

The value closing stock has got an effect on the profit for the period.

Closing stock appears ………in the final accounts.

Errors in figures in the trading and profit and loss account will affect the calculation of profits.

Errors of original entry happen when the entries have been made with the amount being entered wrongly in one account.

An error understating an income item would also understate capital.

An error overstating an expense item would also overstate the net profit.

The journal is a kind of book of prime entry.

Errors are …………… using journal entries.

The provisional profits may change as a result of error …………….

An error understating the purchases amount would overstate gross profit.

Errors of duplication occur when a transaction is entered twice in the book.

Capital expenditure is aimed at providing long-term benefits.

Where business ………… (e.g. telephone) are used for the owner’s personal use, this is also regarded as drawings, and adjustments must be made at the end of the year to reflect this.

Capital expenditure decreases the figure of assets in the balance sheet.

Expenditure incorrectly treated as capital expenditure will overstate the …………… on the balance sheet.

Expenditure incorrectly treated as capital expenditure will overstate the assets on the balance sheet.