5 Written questions
5 Matching questions
- Accounting equation
- Working capital
- Financial position
- Internal decision makers
- a 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.
- b The economic condition of a reporting entity having regard to its control over resources, financial structure, capacity for adaptation and solvency.
- c Excess of current assets over current liabilities.
- d Users of accounting information who operate from within an organisation e.g. owner/manager, manager.
- e assets = liabilities + equity
This equation is sometimes expressed as equity = assets - liabilities. The extended form of the accounting equation is assets = liabilities + equity + (revenue - expenses).
5 Multiple choice questions
- The provision of accounting information to external decision makers.
- 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 .
- The excess of expenses over revenue.
- That quality of financial information that means it can be depended upon to represent faithfully, and without bias or undue error, the transactions or events that either it purports to represent or could reasonably be expected to represent (SAC 3).
- Financial Reporting Council.
5 True/False questions
Assets → Future economic benefits controlled by the entity as a result of past transactions or other past events (SAC 4).
Share → Australian Accounting Research Foundation.
Cheque butt → Residual interest in the assets of the entity after deducting liabilities (SAC 4 definition) Equity is the owners' stake in the business. It consists of owners' contribution, plus accumulated profits, less accumulated losses, less withdrawals.
External decision makers → Reporting to management within an organisation
Patent → Technical and further education.