Chapter 14

Question 1

Also known as:

Statement of financial position

Answer 1

Balance sheet

Question 2

Also known as:

Statement of profit or loss

Answer 2

Profit and loss account

Income statement

Question 3

Also known as:

Non-current asset

Answer 3

Fixed asset

Question 4

Also known as:

Carrying amount

Answer 4

Net book value

Question 5

Also known as:

Inventories

Answer 5

Stock

Question 6

Also known as:

Receivables

Answer 6

Debtors

Question 7

Also known as:

Irrecoverable debt

Answer 7

Bad debt

Question 8

Also known as:

Irrecoverable debt expense

Answer 8

Bad and doubtful debts expense

Question 9

Also known as:

Allowance for irrecoverable debts

Answer 9

Allowance for doubtful debts

Question 10

Also known as:

Retained earnings

Answer 10

Retained profits

Question 11

Also known as:

Payables

Answer 11

Creditors

Question 12

Also known as:

Non-current liabilities

Answer 12

Creditors: amounts falling due after more than one year

Question 13

Also known as:

Current liabilities

Answer 13

Creditors: amounts falling due in less than one year

Question 14

Also known as:

Revenue

Answer 14

Turnover

Question 15

Also known as:

Finance cost

Answer 15

Interest payable

Question 16

Also known as:

Income tax

Answer 16

Taxation expense

Question 17

UK GAAP stands for what?

Answer 17

Generally Accepted Accounting Principles

Question 18

Define: statutory accounts

Answer 18

Financial statements which limited companies are obliged to publish in a particular form

Question 19

What is GAAP a combination of? (4)

Answer 19

Company law
UK accounting standards
The effect of stock exchange listing requirements
The effects of international accounting and financial reporting standards

Question 20

What does the companies act say is paramount?

Answer 20

That company directors publish accounts which show a true and fair view of the company’s results for the period and its financial position at the end of the period