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WorksheetsBAC1614_Quiz 1
Total questions: 25
Worksheet time: 32mins
The accounting period of a business is separated into activitiess that help the business keep its accounting records in an orderly fashion.
Accounting Period Cycle
Source Document
Fiscal Year
None of the Above
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: When a business activity is large enough to impact business decisions, it should be recorded clearly in the financial statements
realization of revenue
materiality
unit of measurement
consistent reporting
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
Concept: The same accounting procedures must be followed in the same way each accounting period
accounting period cycle
objective evidence
consistent reporting
materiality
Concept: Revenue is recorded at the same time goods or services are sold.
realization of revenue
the revenue principle
going concern
historical cost
Concept: The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period
adequate disclosure
unit of measurement
historical cost
matching expenses with revenue
Concept: Business transactions are reported in numbers that have common values. Meaning all reporting should be done in terms of money
Unit of measurement
historical cost
materiality
matching expenses with revenue
Concept: The actual amount paid for merchandise or other items purchased is recorded, even though the value of the asset may be different
unit of measurement
historical cost
matching expenses with revenue
consistent reporting
This concept assumes that, for accounting purposes, the business enterprise and its owners are two separate independent entities
Money Measurement Concept
Going Concern Concept
Business Entity Concept
Cost Concept
If all the business transactions are expressed in monetary terms, it will be easy to understand the accounts prepared by the business enterprise.
Business Entity Concept
Revenue Recognition Concept
Money Measurement Concept
Going Concern Concept
It helps in knowing actual expenses and actual income during a particular time period.
Matching Concept
Accrual Concept
Revenue Recognition Concept
Cost Concept
What is the accounting standard governing accounting ratios?
IAS 2
IFRS3
IFRS 10
There is no standards for ratios
Which accounting principle has not been applied?
A __________ amount will appear on the left side of a T-account.
Credit
Debit
An Asset is:
Refers to items that are owned
Refers to amounts that are owed to others
Refers to amounts earned
What is meant by accounts receivable?
Money owed to a company by its debtors
Money owed by a company to its creditors
Money owed to a company by its employees
Money owed by a company to its vendors
Complete the following statement .Assets=....
Owners equity +liabilities
Bank + Owners equity
Liabilities +Bank
Sale is made to a customer on credit terms. Which of A,L,O/E isn'n part of the transaction?
ASSETS
LIABILITIES
EQUITY
Car is bought on credit from a supplier. Which of A,L,O/E is not part of the transaction?
EQUITY
ASSETS
LIABILITIES
