Questions from Financial Accounting

Q: Discuss the relevance and limitations of the historical cost concept in accounting

Discuss the relevance and limitations of the historical cost concept in accounting.

Q: Roger has a building worth £25,000, land worth

Roger has a building worth £25,000, land worth £125,000, a car worth £10,000. He has a mortgage on the building of £20,000 and a car loan of £12,000. He owes R. Graham £2,000 for supplies bought durin...

Q: Explain the difference between a cash transaction and a credit transaction.

Explain the difference between a cash transaction and a credit transaction.

Q: Explain the difference between trade discount and cash discount.

Explain the difference between trade discount and cash discount.

Q: Outline the purpose and content of (a) an invoice

Outline the purpose and content of (a) an invoice; (b) a debit note; and (c) a credit note.

Q: Explain the difference between an invoice and (a) a

Explain the difference between an invoice and (a) a statement; (b) a receipt.

Q: List the books of prime entry with which you are familiar and

List the books of prime entry with which you are familiar and briefly describe what each is intended to record, including the documents used to write them up.

Q: Briefly describe the nature of a bill of exchange.

Briefly describe the nature of a bill of exchange.

Q: Explain the difference between a credit card transaction and a debit card

Explain the difference between a credit card transaction and a debit card transaction.

Q: Explain the purpose of books of prime entry.

Explain the purpose of books of prime entry.