VCE Accounting Unit 1 - Accounting for small business

Question 1

Which accounting principle requires losses to be reported as soon as they are probable?

Accepted Answer

Conservatism

Question 2

Accounting Principles

Accepted Answer

govern the way accounting information is recorded

Question 3

Which Qualitative Characteristic tells us what to include in our reports?

Accepted Answer

Relevance

Question 4

Using different accounting methods to report information breaches the characteristic of

Accepted Answer

Comparability

Question 5

What stage of the accounting process is collecting source documents known as?

Accepted Answer

Input

Question 6

The separation of business and personal transactions is ensured by which principle?

Accepted Answer

Entity

Question 7

Which accounting principle is most closely linked to the Going Concern principle?

Accepted Answer

Reporting Period

Question 8

Financial information

Accepted Answer

is sorted, classified and summarised financial data

Question 9

Reliability ensures

Accepted Answer

reports are free from bias and error

Question 10

Which stage of the acc. process is performed by the preparation of a Balance Sheet?

Accepted Answer

Output

Question 11

How can reports be made more understandable?

Accepted Answer

all of the above

Question 12

Which acc. principle allows transactions affecting the future of the business to be reported?

Accepted Answer

Going Concern

Questions 12