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WorksheetsRECAP RtR
Total questions: 50
Worksheet time: 50mins
Financial accounting focuses on ...
Recording and summarizing transactions to prepare financial statements for interested users.
Creating internal controls.
Developing product costs
To only serve the decision making needs of internal users.
RtR is
a part of GL that deals with documenting all transactions with financial impact on the company
a finance and accounting process which involves collecting, processing, and presenting timely and accurate financial data
a combination of standards and simply the commonly accepted ways of recording and reporting accounting information
the maintenance and recording of transactions within accounts in a double-entry bookkeeping manner
What is a General Ledger?
A ledger that contains all accounts needed to prepare financial statements.
Bookkeeping
The number that is assigned to an account
A group of accounts
What is IFRS?
an independent group of experts with an appropriate mix of recent practical experience in setting accounting standards, in preparing, auditing, or using financial reports, and in accounting education.
the framework of accounting regulations and standards in a particular country or common area of harmonized accounting systems
set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world
a private standard-setting body whose primary purpose was to establish and improve accounting principles within the United States
GAAP stands for:
Generally Accepted Accounting Principles
Generally Accepted
Accounting Procedures
Globally Preferred Accounting Principles
Resources that are owned by a business is called ________________.
Assets
Liabilities
Equity
Income
Expenses
Which of the following are considered as assets?
Accounts Receivable
Accounts Payable
Office Equipment
Capital
Incomes increase on the
CR SIDE
DR SIDE
EXPENSES INCREASE ON THE
CR SIDE
DR SIDE
LIABILITIES INCREASE ON THE
CR SIDE
DR SIDE
ASSETS INCREASE ON THE
CR SIDE
DR SIDE
Bank is a/an
ASSET
INCOME
EXPENSE
LIABILITY
Stationery is a/an
ASSET
INCOME
EXPENSE
LIABILITY
Received a bank loan.
Dr Liabilities
Cr Bank
Dr Bank
Cr Liabilities
Dr Loan
Cr Bank
Dr Bank
Cr Loan
A detailed listing of all accounts is called
general journal
chart of accounts
general ledger
balance sheet
________ is considered to be the father of contemporary accounting.
Leonardo da Vinci
Peter Drucker
Adam Smith
Luca Pacioli
What accounting form identifies a net loss or net gain?
balance sheet
statement of owner's equity
trial balance
income statement
__________ is the excess of revenue over total expenses.
Liabilities
Assets
Loss
Income
Which accounting principle dictates that revenues are recorded when earned, not when cash is received?
Cost Principle
Expense Recognition Principle
Accrual Principle
Materiality Principle
Which accounting principle states that businesses should report their financial results in distinct time periods such as monthly, quarterly, or annually?
Time period principle
Matching principle
Objectivity principle
Relevance principle
Which correctly shows a list of assets and liabilities?
Assets: mortgage, car loan, land
Liabilities: retirement savings, cash, credit card loans
Assets: building, cash in hand, accounts receivable
Liabilities: loans, accounts payable, mortgage
Assets: creditors, prepaid expenses, loans
Liabilities: stocks, accounts receivable, car
None of the above
Combining the activities of Kellogg and General Mills would violate the
cost principle
business entity assumption
monetary unit assumption
ethics principle
Transactions are recorded in the period in which they occur.
Business Entity Concept
Going Concern Assumption
Accrual Basis
Periodicity
The enterprise will continue to operate in the foreseeable future.
Business Entity Concept
Going Concern Assumption
Accrual Basis
Periodicity
These are assets purchased for long term use and are not likely to be converted quickly into cash.
Current Assets
Non-Current Liability
Fixed Assets
Curren Liability
"Utilizes business resources to generate revenue and thus has both identifiable revenues and identifiable costs" is a description of:
cost center
revenue center
profit center
expense center
Administration department, accounts and finance departments, human resources departments are examples of:
costs by nature
cost centers
profit centers
costs by function
A balance sheet reports a business's financial
Condition over a specific period of time
Progress over a specific period of time
Condition on a specific date
Progress on a specific date
A time-ordered list of account transactions.
Journal
Ledger
Budget
Cash Flow
A book or computer file with separate sections for each account.
Journal
Ledger
Budget
Cash Flow
Which one of the following is NOT a source document?
debit note
journal
invoice
petty cash voucher
Which one of the following is correct?
capital is reduced by a loss
profit does not affect capital
a loan received will reduce capital
if there is no profit there is no capital
A corporation pays its annual property tax bill of approximately $12,000 in one payment each December 28. During the year, the corporation's monthly income statements report Property Tax Expense of $1,000. This is an example of which accounting principle/guideline?
Conservatism
Matching
Monetary Unit
___________ assets include cash (bank deposits) and other assets that will be turned into cash within one year of the balance sheet date.
current
fixed
non-current
intangible
The ____________shows details of money coming into and leaving business, divided into operating, investing and financing activities.
balance sheet
cash flow statement
income statement (P&L)
all of the above
Which one of the following is NOT considered a financial statement?
Income Statement
Balance Sheet
Cash Flow Statement
Tax Return
Expenses can be defined as ________
the cost of operating a business.
money earned when operating a business.
cost of buying new equipment for a business.
None of the above.
Copyrights, Patents and Trademarks are,
A) Current assets
B) Fixed assets
C) Intangible assets
D) Investments
Products are:
acts performed for the benefit of others.
goods produced or manufactured to be sold.
things created to be used by people.
Which of the following accounting concepts means that similar items should receive a similar accounting treatment?
Going concern
Accruals
Matching
Consistency
Which one of the following statements best defines an expense?
An expense is any outflow of economic benefits in an accounting period.
An expense is an outflow of economic benefits resulting from the purchase of resources in an accounting period
An expense is an outflow of economic benefits resulting from a claim by a third party.
An expense is an outflow of economic benefits in an accounting period as a result of the using up of resources or a fall in the value of an asset.
It measures the ability of the business to pay its current trade payables.
Solvency
Liquidity
Activity
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
A list of accounts and their balances at a given time is called a(n)
journal.
posting.
trial balance.
income statement.
5.) It means recognizing an incurred and unrecorded expense that remains unpaid because payment is not yet due.
Accrued Revenue
Prepaid Asset
Accrued Expense
Prepaid Expense
