Grade 10 Accounting Flashcard Challenge!

Front

GAAP sets the standards for the creation of what?

Back

All answers are correct

Front

Antonio, the majority shareholder of a technology company, decided to produce the company's balance sheet whose cash balance included the cash in his own bank account. Would Michael be allowed to do this by GAAP?

Back

No, because of the economic entity assumption.

Front

What does GAAP stand for?

Back

Generally Accepted Accounting Principles

Front

How many GAAP principles are there?

Back

10

Front

What are guidelines that help a business to prepare the financial statements in a consistent and reliable manner?

Back

IFRS (International Financial Reporting standards)

Front

What is the international set of accounting standards used in South Africa known as?

Back

GAAP in South Africa

Front

This concept focuses on the valuation of assets which have been purchased by the business - general rule is that assets are to be calculated and entered in the books by the original cost price (quoted on invoice/paid).

Back

Historical cost concept

Front

According to this concept, the financial affairs of the business must be kept separate from the financial affairs of the owner.

Back

Business Entity concept

Front

This concept is based on the assumption that the business will continue to operate in the future.

Back

Going Concern concept

Front

Matches revenues (income) and costs (expenses) with one another - for each debit entry there is a credit entry.

Back

Matching concept