Wild
10:30 am
What time does period 2 finish?
GST Received and earned is less than GST paid and incurred
What is GST Receivable?
As the residual value and useful life are based on estimated values
Why is depreciation not verifiable?
Receipts from Accounts Receivable increases cash more than the corresponding Credit Sales increases revenue
What causes and Increase in Bank yet a lower Net Profit?
A record of the non current assets a business holds.
What is an asset register?
5
How many revision exams do you have?
The time a business expects to keep a Non Current Asset to help earn revenue
What is the useful life?
Assets decrease
Liabilities no effect
Owner's Equity decrease
What is the impact of depreciation on the Accounting Equation?
A reduction in the amount paid by a credit customer in return for early repayment
What is discount expense?
Assets that have a finite life
What is a depreciable asset?
Historical Cost less Residual Value/Useful Life
How do you calculate depreciation expense?
Negative Revenue
How is a sales return reported in the Income Statement
Standards against which a basis for comparison can be made
What is a benchmark?
Cash is found by deducting cash inflows from cash outflows whereas net profit is found by deducting revenue earned from expenses incurred.
What is the difference between cash and profit?
Why are cash and profit different resoruces?
The non current asset will depreciated evenly to earning revenue over its life.
What is the straight line method of depreciation?
Simmons and Hardy
Who are the authors of the Accounting Textbook?
Budgeted
Industry Averages
Past Performance
What are the Benchmarks?
The ability of the business to earn a net profit when compared to a base such as sales, total assets or owner's equity.
What is profitability?
NPM measures expenses control and is expressed as a percentage whereas net profit is expressed as a dollar mount
What is the difference between NPM and Net Profit?
ROA
NPM
AT
What are the key profitability indicators?
Trademark
What is an intangible asset
The value of the Non Current Asset at the end of its useful life
what is the residual value
To ensure the value is more useful for decision making the historical cost less accumulated depreciation is reported in the Balance Sheet
Why is the carrying value reported in the Balance Sheet?
measures how effectively the business manages their inventory, accounts receivable and accounts payable.
What do efficiency indicators measure?
An increase in sales greater than the increase in Average Total Assets
What causes the Asset Turnover to improve?