International accounting standards 3

Question 1

Period (periodicity) assumption

Answer 1

Accountants divide the economic life of a business into
artificial time periods.

Question 2

Accounting time periods are generally …

Answer 2

a month, a quarter, or a year

Question 3

Monthly and quarterly time periods are called …

Answer 3

interim periods

Question 4

what financial statements do companies prepare?

Answer 4

quarterly and annual financial statements

Question 5

Fiscal Year

Answer 5

Accounting time period that is one year in length.

Question 6

Calendar Year

Answer 6

January 1 to December 31.

Question 7

accrual-basis accounting (znaczenie)

Answer 7

rachunkowość materiałowa

Question 8

Characteristic of accrual-basis accounting:

Answer 8

• Transactions are recorded in the periods in which the events occur.
• Companies recognize revenues when they perform services (regardless of the actual payment).
• Expenses are recognized when incurred (regardless of the actual payment).
• Accrual-basis accounting is in accordance with IFRS, US GAAP and most of the local financial accounting standards.

Question 9

Revenue is recognized when …

Answer 9

performance obligation is satisfied

Question 10

Expenses are recognized when …

Answer 10

efforts are made to generate revenue

Question 11

The Adjusting Entries:

Answer 11

Deferrals: (odroczenia)
- Prepaid expenses
- Unearned revenues
Accruals: (rozliczenia międzyokresowe)
- Accrued revenues
- Accrued expenses

Question 12

Deferrals are …

Answer 12

expenses or revenues that are recognized at a date later than the point when cash was originally exchanged.

Question 13

Types of deferrals:

Answer 13

• Prepaid expenses – expenses paid in cash before they are used or consumed; examples are insurance, subscriptions, rent, supplies; concerts, holidays
• Unearned revenues – cash received before services are performed

Question 14

prepaid expenses (znaczenie):

Answer 14

czynne rozliczenia międzyokresowe kosztów

Question 15

Prepaid expenses are …

Answer 15

costs hat expire either with the passage of
time (e.g., rent and insurance) or through use (e.g., supplies).

Question 16

Unearned Revenues (znaczenie)

Answer 16

nierozliczone przychody/ rozliczenia międzyokresowe przychodów (?)

Question 17

Unearned Revenues

Answer 17

When companies receive cash before services are performed, they record a liability by increasing (crediting) a liability account

Question 18

Types of accruals:

Answer 18

• Accrued revenues: revenues for services performed but not yet recorded at the statement date;
• Accrued expenses(podobne do bierne rozliczenia międzyokresowe kosztów): expenses incurred but not yet paid or recorded at the statement date.

Question 19

accruals (znaczenie):

Answer 19

rozliczenia międzyokresowe

Question 20

Adjusted Trial Balance (znaczenie):

Answer 20

zestawienie sald

Question 21

Adjusted trial balance:

Answer 21

• Proves the equality of the total debit balances and the
  total credit balances in the ledger after all adjustments.
• Primary basis for the preparation of financial statements.

Question 22

Adjusted trial balance:

Answer 22

• Proves the equality of the total debit balances and the
  total credit balances in the ledger after all adjustments.
• Primary basis for the preparation of financial statements.

Question 23

The concept of … is an underlying assumption in the preparation of financial statements,

Answer 23

going concern

Question 24

the concept of going concern (znaczenie)

Answer 24

zasada kontynuacji działalności