Show:
Time Period
Materiality
Mixed
100
What is the Time Period Principle
An accounting principle stating that businesses should report financial statements over a standard time period
100
What is the Materiality Principle State?
Accounting standards can be ignored if the net impact of the transaction is minimal
100
What is the Principle that sets limits to when you can file your accounting
What is Time Period
200
Name the most common three fiscal periods companies use
Monthly, Quarterly, Annually
200
Janette is a manager at Adidas. She decides she needs more post it notes, so she goes and buys a pack out of the companies account. Should she record this transaction?
No, because it isn't going to affect the overall assets of the company nor will it affect any ratios the company uses.
200
At what point in the fiscal period are adjusting entries done
The end of the fiscal period
300
Name 2 groups of people who rely on financial statements and the importance of the time period in the statements
Owners, investors, and creditors
300
What are some financial statements that the Materiality principle should NOT affect and why
Income Statement and the Balance Sheet
300
How might the Materiality principle conflict with the matching principle?
An expense that should be included because of the matching principle might be ignored
400
Kanoo Inc puts out 3 financial statements a year. What is their time period?
4 months
400
When can the materiality principle NOT be used
When making purchases that affect financial statements
400
Kanoo Inc has a fiscal period of 6 months and put out its last financial statement on December 1st, 2016. When would the company put out its next financial statements
June 31st, 2017
500
Can a companies accounting period be changed? If so, how?
It can be changed, but you must send an application to the CRA
500
How might the Materiality Principle affect an audit of the company
There may be assets that are unaccounted for
500
How can a company take advantage of the time period and materiality principles
Open ended