Year 11 Revision Outcome 1 & 2

Ashleigh bought her brother a puppy as a birthday present using her business bank account. Which Accounting Assumption has Ashleigh breached?

• Period

• Accrual Basis

• Going Concern

• Entity

John thinks his business will not be operating in the next year or so and has decided to list all assets as current and further purchases as expenses. Which Accounting Assumption has he breached?

• Entity

• Accrual Basis

• Going Concern

• Period

Bella has been operating her business for 4 years and the has decided it is time for her to prepare financial reports. Which Accounting Assumption has she breached?

• Going Concern

• Entity

• Accrual Basis

• Period

Mark lists all the liabilities of the business as current labilities, even though two of his loans are not due until next year. Which Accounting Assumption has he breached?

• Accrual Basis

• Going Concern

• Entity

• Period

Julia has received fees for flowers she will provide for a wedding in the next financial year. For financial reasons she decides to report this revenue in the current financial year. Which Accounting Assumption has she breached?

• Entity

• Accrual Basis

• Going Concern

• Period

Billy has produced an Income Statement for the year that only reported the last 6 months revenue but the whole year's worth of expenses. Which Accounting Assumption has he breached?

• Accrual Basis

• Period

• Entity

• Going Concern

Jackie has withdrawn $3,000 cash to pay for the deposit on the family holiday. Which Accounting Assumption has she breached?

• Accrual Basis

• Entity

• Going Concern

• Period

Ava found a receipt for fees that occurred 2 years ago and included the revenue as being earned in the current financial reports. Which Accounting Assumption she breached?

• Accrual Basis

• Entity

• Going Concern

• Period

Which Accounting Assumption arises as a result of the Going Concern Assumption?

• Accrual Basis

• Entity

• Relevance

• Period

Which Accounting Assumption requires that revenues earned be matched against expenses incurred so that an accurate Net Profit can be calculated?

• Accrual Basis

• Entity

• Period

• Going Concern