Mock Test

Question 1

An increase in allowance for receivables would be a _____ entry to the irrecoverable debts expense account

Answer 1

Debit

Question 2

When calculating gross profit, should we include VAT into this calculation from sales from a registered VAT retailer?

Answer 2

Yes

Question 3

As a partner retires in a partnership and goodwill is subtracted from the accounts, should this be taken including the old partner or not?

Answer 3

No- goodwill should be taken only from the new partnership