General
Residual interest in assets minus liabilities
What is equity?
an asset account usually ….....when it it debited
What is increase ?
Liabilities + Equity =
What is Assets
The purpose of Financial Statements are .....
What is to provide provide a snapshot of a company's financial health and helping stakeholders assess a company's performance and financial position.
an asset begins to depreciate when...
What is when it start to be used?
An increase in a liability account mean it was .....
What is credited ?
There are three are the main elements of the accounting equation
What is assets, liabilities, equity
Three statements make up the financials
What is Balance Sheet, Income Statement, Cash Flow Statement ?
Two situations should you make a prior period adjustment
What is Change in accounting policy and Material error in prior year?
There are circumstances where financial assets and liabilities be offset
What is Legally enforceable right to offset AND
Intention to settle on a net basis?
Receivables / Credit sales x 365
What is receivable days ?
In a balance sheet report, the total value of assets should be able to match the worth of the following
What is the the total sum of equity and liabilities ?
Six (6) qualitative characteristics of financial information
What is
Financial obligations or debts that an individual or business owes to external parties, such as loans or mortgages, fall under this category
What are Liabilities ?
There are two other element of the accounting equation
What is revenue and expenses ?
A lease incentive accounted for within the financial statements
What is a lease incentive is deducted from the initial measurement of the asset?
If an accountant does not know the accounting treatment of leases, what is the ethical issue.
What is Lack of professional competence and due care (ACCA Principle) ?
According to the Framework, there are circumstances Where liabilities be recognized
What is relevant information and faithful representation?
Fair value - Transaction costs =
What is financial Liabilities
The limitations of financial statements
What is
Historic (prepared to a specific date and published after the reporting date)