← ACG11 Glossary Test
5 Written Questions
5 Matching Questions
- Sales journal
- Accounting sub-systems
- Budgeted statement of financial performance
- a A special journal used to record credit sales.
- b Assets, liabilities, revenue, expenses and equity incorporated into the accounting records.
- c A situation where a person's affairs are subject to legal processes because of insolvency.
- d Parts of the accounting system that deal with specific functions, e.g., payroll, accounts receivable, fixed assets.
- e An estimated statement of financial performance showing projections for future periods.
5 Multiple Choice Questions
- Assets that are not expected to be turned into cash within one year of the balance date.
- Specified time period at the end of which accounting reports are prepared.
- Meets the definition of an asset under SAC 4. It is revenue earned but not received at balance date).
- Consumption or loss of future economic benefits in the form of a reduction in assets or an increases in liabilities, other than those relating to distributions to owners, that result in a decrease in equity during the reporting period (SAC 4 definition).
- Documents that provide details of transactions, e.g., cheque butts, credit notes, invoices, cash register tapes, credit card vouchers.
5 True/False Questions
Reporting entity → 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.
Accounting standards → Standards issued by the Australian Accounting Standards Board (AASB) and the professional accounting bodies relating to the recognition, measurement and disclosure of transactions and other economic events.
Internal reporting → Reporting to management within an organisation
Posting references → Entries made at the end of the longest time period for which revenue and expenses information needs to be kept (usually a year) to set the revenue and expense accounts back to zero and transfer net profit and drawings to the owner's capital account.
Truth → The truth is rarely pure and never simple.