In each blank, try to type in the
word that is missing. If you've
typed in the correct word, the
blank will turn green.
If your not sure what answer should be entered, press the space bar and the next missing letter will be displayed. When you are all done, you should look back over all your answers and review the ones in red. These ones in red are the ones which you needed help on. Question: Assumes that the life of a is expected to continue into the foreseeable future.Answer: Going Question: Has service or future economic benefit
Is controlled by the entity, As a result of a past transaction.Answer: Question: Is a reduction in assets or increases in liabilities, than drawings, which decrease owner’s equityAnswer: Expense Question: Is a sacrifice of assets
That the entity is currently obliged to make
• As a result of a past transaction
Answer: Question: Inflows of cash other assets, or in liabilities other than those relating to contributions by owners, which result in an increase in owner’s equityAnswer: Question: Assumes that the business’ life may be divided into regular time periods to measure its financial position and timely information for decision makingAnswer: Period Question: Transactions are recorded at the amount of cash paid or payable at the time of the Answer: Cost Question: States that all transactions are in dollar termsAnswer: Monetary Question: The effects of transactions are recognised when they occur and are in the financial statements of the periods to which they relateAnswer: Accounting Question: that the financial affairs of an entity must be kept separate from the financial affairs of the owner and other entitiesAnswer: Accounting (notion) Question: Interested in the business information to make sure that the business is making a profit and will continue in business. To see if the business has enough security so can raise a bank loan if needed for expansion. read the Statements, profit.
Answer: information needs (user) Question: Interested in information that enables them to determine whether loans and the interest, will be paid when due. Is their sufficient assets for security for a loan?
Does the business have a good credit history and rating?Answer: information needs (user) Question: are interested in information that enables them to determine whether amounts owing to them will be paid on time.Answer: /creditors information needs (user) Question: Income
Divided into revenue and other income
Expenses
Divided into ‘group 1’ or distribution costs
Administrative expenses and
Finance Costs
are of what statement?Answer: Components of Income Question:
Receipts
Payments
Net increase/decrease in cash for the period
Opening bank balance
Closing bank balance
are components of what statement?Answer: of a cash budget Question: Current assets, Non current assets,
Property plant and equipment, investment assets, intangible assets, current liabilities, non liabilities, equity
are components of which statementAnswer: Components of Statement of position. Question: Expenditure whose benefits are consumed (used up) in the current period. They are incurred to earn revenue and affect the year’s profit and owners’ equity. E.g paid rates, insurance, registration.Answer: Expenditure Question: Expenditure on items that will benefit the business beyond the current financial period. It creates an asset and does not affect Equity. Eg purchase of building, installing new equipment, improvements to an existing asset that its useful lifeAnswer: Expenditure Question: is the systematic allocation of the depreciable amount(cost) of an asset over its useful life. Answer: Question: Assumes the use (consumption) of economic benefits the can provide occurs evenly over its useful life eg
The wear and tear on the outside of a Building is consistent each accounting period.
Answer: Straight line method Question: Assets – liabilities
The residual interest in assets deducting all liabilities of an entity at any point of time.
Answer: Question: Profit is an increase in the net assets of a business which is not attributable to contributions by the .Answer: Profit Question: (owner) is a one person owned business that solely for everything in the business, all finance, all risk, all profit. They can lose all their property paying for debts.Answer: Sole Question: (owners) are two or more people that are jointly and separately responsible for the debts, and the profit, financing, work and risk.Answer: Partnership Question: (Shareholders) that can sell shares to raise finance, profit is shared by dividends. Has one or more directors, succession is possible. Limited liability (ltd) the risk is limited to the amount of investment (shares) they have . Answer: Company Question: a group of members(owners) who make to provide services to its members or recipients, Finance is gained from subscriptions, donations and grants, profits/surplus is distributed services NOT money. Must be audited.Answer: Not for profit (Community ) Question: (community organisation) protects debts from .Answer: Incorporated (Community organisation) Question: (community organisation) does not protect debts or the organisation from its .Answer: Unicoporated Society (community ) Question: The is to assist users in making financial decisions.Answer: Question: Assets future economic benefit will be consumed within one accounting period.Answer: Asset Question: Assets that will be kept in the business so that the firm can in the future. These are the main income producing assets of the firm. Eg Buildings, Computers, VehiclesAnswer: , plant and Equipment Question: Assets generally produce income for the firm but are not the main income producing assets.Answer: Investment Question: Assets that have no physical but represent an investment by the firm.
Eg Trademark, PatentsAnswer: Intangible Question: Expenses that are incurred in order to organise and run the business. These include all expenses that relate to the business premises. Eg rent, office salaries, telephone, general expenses, office wages, insurance, , rates, accounting fees.Answer: Administration Question: Expenses that are to gain finance. Eg.InterestAnswer: Finance Question: Expenses incurred in order to sales and promote business.
Eg Advertising, wages for door to door salesman.Answer: Distribution Question: Liabilities which we expect to be paid within the next period. It will be necessary for us to have cash to meet these liabilities. Eg Short term bank loan and Accounts Payable.Answer: Payable Question: Liabilities which will be paid over a period of time beyond the next accounting . Eg mortgages, hire purchase payments and long term loansAnswer: Non Liabilities Question: If a transaction cannot be in money values, it will not be recorded in the accounting records. For example, the number of years that the business has been trading will not appear in the financial statements of the business.Answer: Limitation of Financial Statements and measurement Question: When preparing the accounting records of a business we only include the business’ transactions and exclude those transactions of its owner. For example, the owner’s private car must not be as a business asset.Answer: Accounting Question: What type of Accountant that checks the accuracy of the financial statements and ensures that the has met legal requirements.Answer: Auditor Question: What type of who Calculates the costs of the production of goods and helps to manage these costs.Answer: Cost Question: What type of Accountant who the accounting reports and analyses the results.Answer: Financial Question: What type of Accountant who the daily running of the accounting systems within the business.Answer: Management Question: What type of Accountants who are not fully qualified accountants but help the accountants in the processing of information.Answer: Accounting (AT) Question: What type of Advises a company of the current tax legislation and how much tax that they are required to pay.Answer: Accountant Question: What is the Accounting Answer: Assets plus Expenses = liabilities plus owners equity plus |
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