Accounting Concepts & Principles
What is accounting?
Accounting is a process to provide financial information to interested parties for decision making
What are the three business structures?
Sole traders, partnerships and companies
What are assets?
They are resources that are owned and/or controlled by a business structure with an expectation to generate a positive economic benefit
What would the transactions in the general journal be for an owner investing cash into his business?
DR Cash CR Capital
Which movie won best picture in the Oscars in 2019?
a. Parasite
b. Once Upon a Time in Hollywood
c. The Shape of Water
d. Bohemian Rhapsody
a. Parasite
Name 3 external users that might be interested in a company's financials?
Governments, investors, suppliers, customers, general public, bankers/lenders.
What does PALER stand for?
Proprietorship, Assets, Liabilities, Expenses, Revenue
What famous game app was taken down in 2014 because it was 'too addictive'
Flappy bird
What is Liquidity?
Term used to explain how quickly a company can concert assets into cash.
What is auditing?
Testing business records and procedures for accuracy
Define a debtor/accounts receivable
They are entities who owe money to you
What's 9 + 10
19 or 21
Which accounting concept/principle states that organisations are expected to continue operating for the foreseeable future
Going Concern Concept
What is the term for buying something now. But only agreeing to pay it later.
Buying on credit.
Why was the 2010 official ball of the FIFA world cup controversial?
It was said to be unpredictable?
What would this transactions be in the general journal? "Credit Sales?"
DR Debtors/Accounts receivable CR Sales
What is double entry accounting?
The accounting system that states that when a transaction occurs, at least 2 accounts should be affected.
Finish this Justin Bieber song lyric:
Heart full of equity, ............
Heart full of equity, you're an asset
What are the two main ways the accounting equation can be represented?
Assets = Liabilities + OE
OE = Assets - Liabilities
What would the general journal transaction be for "returned goods to supplier because they were faulty, received cash for return"
DR Cash CR Purchases return