5Exercises on individual topics with solutions

5.1Bookkeeping and basic terms

Exercise 1: Basic accounting terms

Time to solve:10 minutes

a) Exercise

You are working in the accounting team of a company at the end of March 20X1. Classify the different transactions as cash in-/outflow, expenditures/proceeds, income/expenses or output/cost. Neglect VAT.

  1. Delivery of 3,000 kg of raw material for €8/kg on credit.
  2. Cash sale of goods that were produced in March for €12,000.
  3. Payment of wages and salaries from bank account of €16,700 for March plus a payment of €3,300 for February.
  4. Payment of receivables of about €25,000.
  5. Sale of a used machine for €26,800 on credit. The book value of the machine is €21,800.
  6. Overdue notice ...

Get Financial Accounting now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.