A balance sheet provides information about the performance of an entity.

Interim financial statements are prepared once in two years.

To book as a verb means to record a transaction.

Financial accounting is double-entry bookkeeping, where each transaction is posted on at least two accounts.

Management accounting is a branch of accounting, which provides information primarily to external users primarily.

Interim financial statements are compiled annually.

International Financial Reporting Standards IFRS are one of the instruments of international accounting harmonization.

Annual financial statements usually cover a period of 12 months.

Accounting harmonization is a standardization process of accounting methods and principles used in different countries throughout the world in order to compare financial statements.

There are four compulsory financial statements: a balance sheet, a statement of financial position, an income statement and a statement of cash flows.

A capital fund represents the value of the owner´s (or owners´) investment.

The basic accounting equation states: Assets = Equity + Liabilities (The total sum of assets equals the total sum of equity plus the total sum of liabilities.)

A book-keeper is a person who has passed the accountancy examinations of an authorized accountancy body has completed work experience and.

Choose all asset items out of the following list:

Liabilities are obligations of a company to pay a certain amount of money at a predetermined time in return for past or current benefits.

Check all compulsory features of an accounting document from the following list:

Current assets have a turnover of less than one year. They are consumed or used during the production or service process in a short period of time.

A shareholder is an external user of accounting information.

Choose external documents from the following possibilities:

An accounting reference date (a balance sheet date) is the date at the end of an accounting period. Each accounting unit prepares its financial statements on that date.

Profit or loss is reported in own funds (it is an equity item).

Receivables are the current liabilities of a company.

An asset is a probable future economic benefit obtained or controlled by an entity resulting from current or past transaction(s).

Accounting can be divided into financial accounting and non-financial accounting.

A VAT registered person records issued invoice for services as: 1 000 Cr: Revenues from services 200 Dr: VAT 1 200 Dr: Customers (Trade receivables)

Depreciation is a process of allocating the cost price of a long-term asset to the depreciable life.

A VAT registered person records material consumption as: Dr: Material consumed Dr: VAT Cr. Material

Car acquisition cost is 600, accumulated depreciation is 500. The car is sold for 250 - issued invoice. Sale is recorded as: 1) 100: NBV of fixed assets sold / Accumulated depreciation of equipment 2) 600: Accumulated depreciation of equipment / Equipment 3) 250: Customers / Revenues from fixed assets sale

Finished products sale is recorded in two steps as: The first step - removal from the store: Dr: Changes in products Cr: Products (Finished products) The second step – issued invoice: Dr: Customers (Trade receivables) Cr: Revenues from products