Flashcards
Introduction to Financial Statements
Flashcards do conjunto (16)
- 1The Conceptual Framework for Financial Reporting (CFfFR) provides/are ...... provides the definitions, principles and concepts that have to be applied in the preparation of financial statements
... are the ‘rules’ of financial reporting - 2As the CFfFR states that the financial effects of transactions must be grouped into 5 broad categories, which are:Assets
Liabilities
Equity
Income
Expenses - 3Assets are ...resources of the company, they must be:
- controlled by the company
- able to provide some form of future benefit from the resource
- be as a result from some past transaction or event
- - 4Liabilities are ...present obligations that are expected to result in outflow of economic benefit (money)
- 5Equity is ...residual interest in a company
amount left over after company ceases to exist and all assets etc are divested. - 6Income is ...Increase in economic benefit within accounting period
- 7An Expense is ...A reduction in economic benefit during the accounting period.
- 8How does an Expense differ from a LiabilityAn expense is a previous cost that has already occurred, a liability is a future cost (i.e. not yet occurred) but are promised.
- 9The two main financial statements are ...Statement of Profit and Loss
Statement of Financial Position - 10The position of a business reflects the current ... of a business and is reflected by ...The position of a business reflects the current stability of a business and is reflected by assets, liability and equity
- 11... and ... reflect the performance of a businessIncome and Expense reflect the performance of a business
- 12The 'Accounting Equation' is ...Assets - Liabilities = Equity
Assets (end of period) = Equity (start of period) + Profit/Loss + Liabilities (end of period) - 13The difference between a Current and Non-Current Asset/Liability is that ...a Current Asset/Liability is consumed within the 12 month period from end of Statement of Financial Position
- 14Ordinary Share Capital is ...the amount invested by shareholders
- 15Retained Earnings represents ...the total amount of profit entity has produced throughout its own life
- 16The Statement of Changes in Equity reconciles ...the movement in equity reported on the Statement of Financial Position
Informações
- Descrição
- Bachelors Degree Introduction to Accounting (Unit 1 - Introduction to Accounting) FlashCards sobre Introduction to Financial Statements, criado por Jorden Allcock em 10-02-2016.
- Criado por
- Jorden Allcock
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