2.1
2.2
2.4
Extras
100
To determine a person's or business's financial position
What is the purpose of a balance sheet?
100
When total happens to also be the final total.
When is a double ruled line drawn beneath a total?
100
The business entity concept.
What GAAP principle states that person assets cannot be put in the business balance sheet?
100
Another term is net worth
What is another term that has the same meaning as equity?
200
In order of their liquidity
In what order should assets be listed?
200
If the abbreviation is part of the company's name.
When can abbreviations be used?
200
The principle of conservatism.
What GAAP principle says that accounting for a business fair and reasonable?
200
1. list all assets 2. list all liabilities 3. calculate the difference between total assets and liabilities
Give three steps to work out a company's financial position
300
A-L=OE or A=L+OE
What is the fundamental equation used on the balance sheet?
300
It should be placed with the first amount in every column and beneath each single line in each column.
Where should the dollar sign be used in a balance sheet?
300
Generally Accepted Accounting Principle
What does GAAP stand for?
300
They belong to the owner and creditors
When a business is closed down, to whom do the assets belong to
400
Selling assets for cash
What does liquidation mean?
400
In order of when they will be paid.
In what order are liabilities listed?
400
The ongoing concern concept
Another name for the continuing concern concept
400
A business will continue to operate unless it is known that it will not.
The continuing concern concept
500
To see how the business is doing.
Why is it important to know a business's financial position?
500
Who What When
What is the three line heading used in the balance sheet?
500
Canadian institute of chartered Accountants
What organization establishes the GAAP principles?
500
They have either provided the funds used to acquire the assets or they have provided the assets themselves.
Why do creditors and owner have a claim on the assets?
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