5 Written questions
5 Matching questions
- Investing activities
- Accounting reports
- Cash sale
- Operating activities
- a The three general purpose financial reports are the Statement of Financial Position, the Statement of Financial Performance and the Statement of Cash Flows.
- b An underlying accounting concept which requires that accountants provide all relevant (material) information to users of financial statements.
- c Sale where the customer pays for the goods or services at the same time that the benefit is received.
- d Activities that relate to the revenue earning function of the business.
- e Activities relating to the purchase or sale of the non-current assets of an entity.
5 Multiple choice questions
- Ongoing investigation as to compliance with policies and procedures carried out by designated staff within an organisation.
- Obligations of the entity which do not require payment within one year of the balance date.
- An expense that arises when a credit customer is permitted to settle his/her account for less than the amount owning in return for prompt payment.
- 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 which records details of and provides proof of goods delivered.
5 True/False questions
Special journals → Sub-divisions of the journal in which transactions affecting the same ledger account are grouped together, e.g. sales journal, cash receipts journal. With the use of special journals the general journal is only used for transactions that do not fit into the special journals .
Accrual accounting → A process of capturing and recording transactions, preparing reports and analysing, interpreting and communicating information to assist in, and enhance, business decision-making.
Special purpose financial reports → Documents that provide details of transactions, e.g., cheque butts, credit notes, invoices, cash register tapes, credit card vouchers.
Amortisation → The process of allocating the cost of an intangible asset over the accounting periods benefiting from its use. Refer to depreciation.
Working capital → Excess of current assets over current liabilities.