CAPE Accounting

Assets=Liabilities-Owner's Equity is the accounting equation

• TRUE

• FALSE

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• None of These

Concept: a business's records should never be mixed with an owner's personal records and reports

• adequate disclosure

• business entity

• objective evidence

• going concern

Concept: Financial statements are prepared with the expectation that business will remain in operation indefinately

• going concern

• materiality

• accounting period cycle

• matching revenue with expenses

What is owner's equity? 

• The amount of money the owner's has
• The stock options 
• The assets 
• The assets minus the liabilities of a business 

Who issues IFRS/IAS?

• IASB

• IFRS Foundation

• IFRS Interpretation Committee

• IFRS Advisory Council

Which is correct?

• IAS1 Presentation of Financial Statements

• IAS2 Presentation of Financial Statements

• IFRS1 Presentation of Financial Statements

• IFRS2 Presentation of Financial Statements

• IFRS3 Presentation of Financial Statements

The following are the elements of financial statements except

• Assets

• Liabilities

• Drawings

• Revenue

The International accounting standards are developed by

• Malaysian Institute Of Accountants

• American Standards Board

• International Accounting Standard Board

• Indian Accounting Board

The following are the users of financial statements ......

• Government

• Employees

• Customers

• All the answers