WorksheetsC1: Introduction to accounting
Total questions: 10
Worksheet time: 2mins
which of the following should be accounted for as capital expenditure?
the annual cost of painting a factory floor
the repair of a window in a building
the purchase of a vehicle by a garage for re-sale
legal fees incurred on the purchase of a building
a statement of financial position is best described as:
a snapshot of the entity's financial position at a particular point in time
a record of an entity's financial performance over a period of time
a list of all the income and expenses of the entity at a particular point in time
a list of all assets and liabilities over a period of time
materiality is an entity specific aspect of which qualitative characteristics?
relevance
understandability
faithful representation
comparability
which three of the following are fundamental principals of IESBA Code of ethics for professional accounts
integrity
objectivity
independence
confidentiality
courtesy
The ICAEW uses rule-based approach
True
False
a code based upon a set of principles requires a professional accountant to comply with a set of specific rules
True
False
which of the following is not a source of the accounting rules embodied in UK GAAP？
The companies act 2006
UK Accounting standards
Listing requirements of the London stock exchange
accounting requirements of an entity's US parent company
which of the following is correct?
the ICAEW Code of Ethics applies to its members only
the ICAEW Code of Ethics applies to its members and employees of member firms only
the ICAEW Code of Ethics applies to its members, employees of member firm and ICAEW students
the ICAEW Code of Ethics applies to its members, employees of member firm ICAEW students and all other members of UK Accountancy bodies
which of the following definitions of the going concern concept in accounting is consistent with IAS 1, Presentation of financial statements?
the directors do not intend to liquidate the entity or to cease trading in the foreseeable future
the entity is able to pay its debts as and when they fall due
the directors expect the entity's assets to yield future economic benefits
financial statements are prepared on the assumptions that the entity is solvent and would able to pay all creditors in the full in event of being wound up
Which of the following is classified as revenue expenditure?
purchase of inventories for resale
purchase of motor vehicles to deliver goods to customer
purchase of machinery for use in production
purchase of a warehouse to story inventory
