1. What is accrual basis of accounting method? Why the accrual basis of accounting method is considered better than cash basis accounting method?

2. How do you calculate Net Profit (Loss)?

3. When does accounts payable occur?

4. A business had payments to suppliers of $453, employees $121. Customer receipts $654, interest paid $10. Calculate net fund of the business from operating activities.

5. A business had net cash flows from operating activities of $64, from investment activities of -$42 and from financing activities of -$20. Calculate the net cash position of the business.

6. A business had $5 in the bank, accounts receivable of $6, accounts payable of $3, inventory of $4 and accrued expenses of $1. Calculate the current ratio for the business

. 7. Write down the equation for Cost of Goods Sold.

8. You have beginning inventory of $40,000, Ending inventory of $20,000 and Cost of (Goods) sold of $100,000. How much Purchases did you made?

9. Which ratio is used to measure the efficiency of the business operations?

10. During the year ended 30 June, the owner of a business paid $2000 in insurance. Of this amount $333 related to July and August 2010. How would the amount $333 would be shown in the balance sheet at 30 June 2010?

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Accounting Questions and Answers 1 Accrual Basis of Accounting The accrual basis recognizes revenue ... View the full answer