Basic Accounting
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Basic Accounting - Leaderboard
Basic Accounting - Details
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60 questions
| 🇬🇧 | 🇬🇧 |
| What is Accounting? | All of the above |
| Selling people's time | Services |
| Buying and selling products | Trader or Merchandising |
| Growing or extracting raw materials | Raw Materials |
| Selling the utilization of infastructure | Infastructure |
| This kind of business has a single owner | Sole Proprietorship |
| Owner/Manager of the Sole Proprietorship | Proprietor |
| These are the investors of a corporation | Stockholders |
| Unit of ownership in corporation | Share of stocks |
| Accounting records and statements are most reliable data available so that they will be as accurate and as useful as possible. | Objectivity Principle |
| Acquired assets should be recorded at their ACTUAL COST and not management thinks they are worth as at reporting date. | Historical Cost Principle |
| Revenue is recognized in the accounting period when goods are delivered or services are rendered or performed | Revenue Recognition Principle |
| Expenses should be recognized in the accounting period in which goods and services are used up to produce revenue and not when entity pays for those goods and services | Expense Recognition Principle |
| All relevant information would affect the user's understanding and assessment of the accounting entity be disclosed in the financial statements. | Adequate Disclosure |
| It depends on the size and nature of the item judged in the particular circumstances of its omission | Materiality |
| Firms should use the same accounting method from period to period to achieve comparability over time within a single enterprise. | Consistency Principle |
| A present obligation of the entity to transfer an economic resource as a result of past events | Liability |
| What do you call the "Assets = Liabilities + Owner's Equity" | Accounting Equation |
| Capital's normal balance | Credit |
| Asset account INCREASES and a corresponding account (either Liabilities or Owner's Equity) INCREASES | Source of Assets |
| One asset account INCREASES, another asset account DECREASES | Exchange of Assets |
| Assets accounts DECREASES, corresponding claims (Liability or Owner's Equity) DECREASES | Use of Assets |
| One claims (Liabilities or Owner's Equity) INCREASES, another claims (Liabilities or Owner's Equity) DECREASES | Exchange of Claims |
| Increase in Assets = Increase in Liabilities | Source of Assets |
| Increase in Assets = Increase in Owner's Equity | Source of Assets |
| Increase in one Assets = Decrease in another Assets | Exchange of Assets |
| Decrease in Assets = Decrease in Liabilities | Use of Assets |
| Decrease in Assets = Decrease in Owner's Equity | Use of Assets |
| Increase in Liabilities = Decrease in Owner's Equity | Exchange of Claims |
| Increase of Owner's Equity = Decrease in Liabilities | Exchange of Claims |
| Increase in one Liability = Decrease in another Liability | Exchange of Claims |
| Increase in one Owner's Equity = Decrease in another Owner's Equity | Exchange of Claims |
| Convertible to cash within a year | Current Assets |
| Short term investments (maximum of 3 months) | Cash Equivalents |
| Expected payments from buyer/customers | Accounts Receivable |