From All Themes

Question 1

Creative accounting

Answer 1

Recording transactions and values in a way that produces a false result (Tuloksen manipulointi)

Question 2

Single-entry bookkeeping

Answer 2

Uses only income and expense accounts. (Yhdenkertainen kirjanpito)

Question 3

Double-entry bookkeeping

Answer 3

Requires recording each transaction twice using debits and credits. (Kahdenkertainen kirjanpito)

Question 4

Depreciation

Answer 4

Reducing the value of assets in the company’s accounts. (Arvonalennus, poisto)

Question 5

Historical cost principle

Answer 5

Companies record the original price of assets. (Alkuperäisen hankintamenon periaate)

Question 6

Going concern

Answer 6

Assumption that the company will continue to do business. (Toiminnan jatkuvuus)

Question 7

Replacement cost

Answer 7

The amount that would have to be paid to replace the assets now. (Jälleenhankintakustannus)

Question 8

Full-disclosure principle

Answer 8

All significant information must be included in financial reporting.

Question 9

Principle of conservatism

Answer 9

Different accounting methods possible but you choose the one least likely to overstate assets.

Question 10

Revenue recognition principle

Answer 10

Principle that revenue is recognized in the accounting period in which it is earned. (Tuloutusperiaate)

Question 11

Matching principle

Answer 11

States that each cost or expense related to revenue earned must be recorded in the same period as it helped to earn. (Vastaavuusperiaate)

Question 12

Provision

Answer 12

Amounts of money deducted from profits. (Varaus)

Question 13

Assets

Answer 13

Things owned by the company. (Omaisuus)

Question 14

Current assets

Answer 14

Things that will probably be used in the near future. (Vaihto-omaisuus)

Question 15

Shareholder’s equity

Answer 15

Referring to all the money belonging to shareholders.

Question 16

Retained earnings

Answer 16

Profits from previous years that have not been distributed as dividends. (Voittovarat)

Question 17

Debtors

Answer 17

Companies or people who owe money they will have to pay in near future. (Velalliset)

Question 18

Bad debt

Answer 18

Money that is owed by a company but that will probably not be paid. (Luottotappio)

Question 19

Work-in-progress

Answer 19

Partially manufactured products. (Keskeneräinen tuotanto)

Question 20

Intangible assets

Answer 20

Assets with no physical existence, e.g. patents. (Aineettomat)

Question 21

Liabilities

Answer 21

Obligations the organization has to pay to other organizations. (Vieras pääoma)

Question 22

To grant credit

Answer 22

e.g. a supplier gives a buyer a period of time before they have to pay for the goods. (Myöntää maksuaikaa)

Question 23

Share capital

Answer 23

The money the company has raised by selling its shares. (Osakepääoma)

Question 24

Tangible assets

Answer 24

Assets with a physical existence, e.g. buildings. (Aineelliset)

Question 25

Patent

Answer 25

Exclusive rights to produce a particular new product for a fixed period. (Patentti)

Question 26

Creditors

Answer 26

Suppliers who are not paid at the time of purchase. (Velkojat)

Question 27

Accrued expenses

Answer 27

Costs that have built up during the accounting year but will not be paid until the following year. (Siirtovelat)

Question 28

Share premium

Answer 28

Money made if the company sells shares at above their face value. (Ylikurssi/Kurssivoitto)

Question 29

Profit and loss account

Answer 29

This shows the difference between the revenues and expenses of a period also income statement. (Tuloslaskelma)

Question 30

Goodwill

Answer 30

Price paid for a company - it’s net worth. (Yrityksen liikearvo)

Question 31

Current liabilities

Answer 31

Liabilities expected to be paid within a year of the date of the balance sheet. (Lyhytaikaiset velat)

Question 32

Deferred taxes

Answer 32

Money that needs to be paid as tax in the future. (Maksettava alv-velka)

Question 33

Turnover

Answer 33

The total amount of money received during a specific period also sales revenue. (Liikevaihto)

Question 34

Gross profit

Answer 34

Revenue - cost of sales (myyntikate)

Question 35

Net profit

Answer 35

The gross profit minus all the expenxes/”The bottom line” (Nettovoitto)

Question 36

Direct costs

Answer 36

Related to the production of products, e.g. manufacturing materials. (Välittömät kustannukset)

Question 37

Indirect costs

Answer 37

Cannot be identified with particular manufacturing processes also overheads, e.g. electricity (Välilliset kustannukset)

Question 38

Fixed costs

Answer 38

Do not change even if the production level changes, e.g. rent (Kiinteät kustannukset)

Question 39

Variable costs

Answer 39

Change in proportion to the volume of production, e.g. components and raw materials. (Muuttuvat kustannukset)

Question 40

Absorption costing

Answer 40

All the expenses are allocated to product in order to find out the costs of that product. (Omakustannuslaskenta)

Question 41

Activity-based costing

Answer 41

Calculates the costs related to a particular activity such as planting the seeds in farms. (Toimintokohtainen kustannuslaskenta)

Question 42

Breakeven point

Answer 42

The sales volume at which the company covers its costs but doesn’t make any profit (Kriittinen piste)

Question 43

Rolling budget

Answer 43

A budget where a new quarter is added into the budget and an old quarter is dropped out. (Rullaava budjetti)