Practice questions Flashcards
What are Debtors (customers) referred to on a Statement of Financial Position?
Receivables
What are fixed assets referred to on the statement of financial position as?
Non-current assets
The heading for a Statement of Financial Position is referred to as what?
A snapshot moment in time e.g. as at 31 January 2017
The income statement is also known as?
Profit and Loss
What is the fundamental accounting equation?
Assets = Equity - Liabilities
The historical cost of a non-current asset less accumulated depreciation is the…
A net book value of a non-current asset
Depreciation is intended to?
Reduce the cost of an asset over its expected useful life
What are financial statements primarily prepared for?
External users of financial information
What does the income statement show?
The financial performance of the business
What does the statement of financial position show?
The assets and liabilities of a business
What does the statement of cash flow tell us?
How much has been received and paid during an accounting period
What is the historical cost of a non-current asset less (-) accumulated depreciation called?
Net book value of a non-current asset
Accrual rises as a result of…
A business being provided with a service for which no supplier invoice has been received
