FAR - Framework, Overview & Statements - General-Purpose Financial Statements - Balance Sheet 2 Flashcards
Do IFRS allow the term “reserve” on the balance sheet?
Yes, the term reserve is allowed.
What is the classification for an asset that is held for trading?
Current asset.
What are the steps of the accounting cycle?
1) Analyze source documents; 2) post to ledger; 3) Make adjusting entries; 4) prepare trial balance; 5) prepare income statement, balance sheet, and cash flow statement; 6) close temporary account.
What should financial statements do according to IFRS?
Fairly present the underlying financial position and financial performance of the entity by faithfully representing the underlying economic reality the firm faced during the period.
What do control accounts report?
The aggregate balance of several subsidiary accounts.
What is the overall objective of financial statements under IFRS?
To provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions.
What kinds of transactions are recorded in special journals?
High volume similar transactions are recorded in special journals.
What type of balance sheet is required under IFRS?
Statement of Financial Position items must be classified as current and non-current.
What does a chart of accounts do?
Assigns account numbers to accounts for use in computerized information systems.
