← ACG11 Glossary Test
5 Written Questions
5 Matching Questions
- Audit trail
- Reporting entity
- Carrying value
- a An entity where it is reasonable to expect the existence of users who are dependant on general purpose reports for information, i.e., users who cannot command the preparation of reports tailored to satisfy specifically their own information needs.
- b Statements of accounting concepts. Statements issued as part of the conceptual framework:
SAC 1 — Definition of the Reporting Entity.
SAC 2 — Objective of General Purpose Financial Reporting.
SAC 3 — Qualitative Characteristics of Financial Information.
SAC 4 — Definition and Recognition of the Elements of Financial Statements.
- c the withdrawal of cash or other assets, e.g. stock, from a sole proprietorship or partnership by owner(s) for their personal use.
- d A set of linked data, clearly documenting all stages of a business transaction.
- e The original cost of an asset less accumulated depreciation, if any.
5 Multiple Choice Questions
- Documents that provide details of transactions, e.g., cheque butts, credit notes, invoices, cash register tapes, credit card vouchers.
- A company which has limited liability. It is not permitted to raise funds from the public and is restricted in the number of its shareholders.
- The capturing and recording stage of the accounting process. Can also include report preparation. Generally refers to the more routine and predictable accounting related activities.
- Document prepared by the seller as evidence of a sale. The original is sent to the purchaser and the copies are kept by the seller.
- Specified time period at the end of which accounting reports are prepared.
5 True/False Questions
Budgeting → A record that reflects the effects of transactions on individual asset, liability, equity, revenue and expense items, e.g., bank, wages, sales.
Not-for-profit organisation → Organisation whose primary objective is not necessarily to make a profit. Examples of not-for profit entities are charities, sporting clubs, religious organisations, public schools and public hospitals.
Corporations' legislation → An entity where it is reasonable to expect the existence of users who are dependant on general purpose reports for information, i.e., users who cannot command the preparation of reports tailored to satisfy specifically their own information needs.
Chart of accounts → Asset, liability and equity accounts.
Investing activities → Activities relating to the purchase or sale of the non-current assets of an entity.