Closing stock appears ………in the final accounts.

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

The journal is a kind of book of prime entry.

Errors are …………… using journal entries.

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.

Costs of business belong to capital expenditure.

The main difference between the two types of expenditure is the ………… of time the expenditure is of benefit to the business.

Revenue expenditure is the day-to-day …………. costs of a business.

Capital expenditure is the money spent on the ………… of fixed assets or on improvements to fixed assets.

Expenditure incorrectly treated as revenue expenditure will understate expenses and increase profits.

Depreciation is the estimate of the …………in value of fixed assets over a period of time.

The word ‘estimate’ in allowing for depreciation of fixed assets means that you are estimating the working……….of the asset.

Any debt written off must be charged against the profit by means of a ……….entry in the profit and loss account.

Bad debts written off are not shown in the balance sheet.

The asset account balance is reduced when the asset is sold or……….

Straight line method is also termed the fixed …………..method.

Depreciation provision account has a credit balance.