Introduction Financial Accounting

Question 1

What is Income Statement

Answer 1

Shows revenue and expense for the year and therefore profit or loss

Question 1

What is Statement of financial Position show

Answer 1

Shows assets and liabilities of a business at a given point in time

Question 2

Income statement

Answer 2

Income - Expenses = Profit or Loss

Question 3

SOFP

Answer 3

Assets - liabilities = capital

Question 4

Revenue expenditure

Answer 4

Day to day expenditure for items e.g. electricity bills

Question 5

Non - current assets

Answer 5

Items used by business that are used over 1 year.

Question 6

Management Accounting

Answer 6

The provision of information for management such as budgets and forecasts to allow planning, control and decision making. Management accounting looks at the future, based on past information.