Conceptual Basis
Objectives and purpose
Company's Formation
Company Processing
Company's financial Report
100
What are the four main characteristic of Accounting
Relevance, Reliability, Understandability, Comparability
100
Name the objective of preparing the statement of Financial Position.
calculate and state the value of Asset, Liabilities and Proprietorship.
100
Name the document prepared by the company that gives information about the business, how many share available and the price.
Prospectus
100
What is the general journal entry to record the receiving of application
Dr: Bank Sharetrust Cr : Application
100
Financial Reporting has two roles, what are they?
Informative and Accountability role
200
What are the five elements of Accounting
Asset, Liability, Owners' equity, Expense, Revenue
200
what is the objective of the GPFR ( General Purpose Financial Statements.
Provide information to meet the needs of external users. it assess the entity's financial performance, financial position and cash flow. Assess the entity's compliance with the law Make decisions
200
What kind of liability a reporting entity have.
Limited Liability
200
What is the general journal entry to a lot the shares?
DR: Application Cr : Paid in Capital
200
In addition to an owner, these people also have claims against a company's assets.
Creditors
300
or provide an example of Balances and Trade off.
Reliability vs. Timeliness Relevance vs. Timeliness
300
Name the objectives of the statement of Concept
Assist Users, Assist Preparers, Assist Auditors, Assist FRSB
300
Ownership of a company is called?
shares
300
Define goodwill and how is goodwill calculated
value representing the good reputation of the business, calculated by taking the agreed value - Net Asset
300
Name the three accounts for the proprietorship section
Paid in Capital, REtained Earning, REvaluation REserve
400
Name one underlying assumption of accounting and describe what it is.
Going Concern, Period Reporting, Accrual Basis
400
What is the objective of GAAP, General Accepted Accounting Practice
making sure that the practice of accounting adopted results in a fair presentation and has authoritative support.
400
Name two disadvantages of forming a company
Expensive to form, double taxation
400
Vendor is classified as a?
Liability Account
400
Name the three section of the cash Flow statement
Operating, investing, financing
500
Name one financial measurements and explain what it is.
Historical Cost, Modified Historical Cost, Current Cost
500
What is the scope of the Statement of Concept, and name a few of the examples.
Content of the statement, include the objectives, the characteristic, measurement base and so on.
500
What is the term used for expenses that results from printing prospectus and issuing of shares and it is recorded as an administrative expense.
Preliminary expense
500
What is the entry to record issuing of shares to pay for a Mortgage.
Dr: Mortgage Cr: Paid in Capital
500
Name 4 statement we' ve prepared in this class to report on company's performance?
Revenue Statement, Balance Sheet, Cash Flow, Statement of Changes in Equity, Statement of Changes in Accounting Policy
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