11ACC - what do you know?

What is the purpose of the Statement of Cash Flow?

• To show the financial position at a specific date

• To report revenues and expenses over a period

• To provide information about cash receipts and payments

• To summarize changes in equity

What is the fundamental principle of double-entry accounting?

• For every debit entry, there must be an equal credit entry

• Keeping two sets of books

• Having two accountants for every business

• Balancing the books twice a year

Which describes is the primary purpose of accounting?

• To make profits

• To provide financial information

• To sell products

• To manage human resources

Which financial statement shows the profit made at the end of a specified period?

• Statement of Profit or Loss

• Statement of Financial Position

• Cash Flow Statement

• Statement of Changes in Equity

Which most represents the definition of a liability?

• An obligation or debt

• A resource that provides future economic benefits

• Ownership interest of shareholders

• Revenue earned by a business

What is the main function of the Statement of Profit or Loss?

• To show the financial position of a business

• To provide information about cash flows

• To report revenues and expenses over a period

• To list assets and liabilities

Which financial statement reflects the financial position of a business at a specific point in time?

• Statement of Profit or Loss

• Statement of Financial Position

• Cash Flow Statement

• Statement of Changes in Equity

What is the accounting equation?

• Assets = Liabilities + Owner's Equity

• Revenues = Expenses

• Cash Inflows = Cash Outflows

• Profit = Revenue - Expenses

What does owner's equity represent in the accounting context?

• An obligation or debt

• A resource that provides future economic benefits

• Owner/s investment in the business

• Revenue earned by a business

What is an asset in accounting?

• An obligation or debt

• A resource that provides future economic benefits

• Ownership interest of shareholders

• Revenue earned by a business