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09 ACC Revision intro to accounting Flashcards | StudBud
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09 ACC Revision intro to accounting
09 ACC Revision intro to accounting
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Answers
1
What is the accounting entity assumption?
It divides the life of an enterprise into arbitrary time periods
That the owner and the business are separate entities.
Revenues and related expenses are recognised in the same period.
Assumes all transactions can be recorded in money terms.
2
Is this an Narrative Style Balance Sheet?
False
True
3
This is an example of a 't-format' balance sheet
True
False
4
What is a liability?
what you owe to a firm
the value of your student loans
something that you posses that increases in value
the value of your home
5
What is a liability?
The debts you owe.
Things you need.
Things you want.
Things you own.
6
Balance sheets shows owners equity
False
True
7
What is an asset?
An amount owed by a business
Anything of value that is owned
Something that lost all or most of its value
Having a great personality & good looks
8
T Style Balance Sheet is
A=L+OE
A-L=OE
9
What is the Accounting equation?
Owner's Equity = Assets + Liabilities
Assets = Liabilities - Owner's Equity
Assets = Liabilities + Owner's Equity
Owner's Equity= Assets - Liabilities
10
What is a 'Balance Sheet'?
A record of all company sales
A list of company shareholders
An outline of a company's marketing strategy
A financial statement showing a company's assets, liabilities, and equity
11
What is a non-current asset?
Something owned that will be converted to cash in more than a year
Something owed by a business that needs paying in less than a year
Something owed by a business that needs paying in more than a year
Something owned that will be converted in to cash in less than a year
12
Narrative Style Balance Sheet is
OE+L=A
A+L=OE
A-L=OE
13
What is owners' equity?
Funds retained in the course of business activities
Funds contributed by the owners
14
What is an
inventory
?
not having enough
to trade
causing fear or admiration
supply of goods or materials
15
What is a non-current liability?
has to be paid within 12 months
Can be repaid after 12 months
something that will be used up or converted into cash within 12 months
what the owner has contributed to the business
16
What is accounts recievable?
The people the practice owes money to
Accounts in good standing at the bank
Materials that need to get paid for
A record of all the moneys due to practice
