Terminology

Question 1

What is ethics

Answer 1

Ethics refer to the socially acceptable or correct way to do something

Question 2

What is a code of conduct

Answer 2

A code of conduct is a written set of norms and values about how to behave ethically and correctly

Question 3

What is a code of conduct used for

Answer 3

It is used to regulate the behavior of members of an organization to keep their behavior within acceptable norms and set standards of acceptable behavior to ensure professionalism

Question 4

What are the basic principles of business ethics

Answer 4

Integrity
Objectivity /Fairness
Professional competence and due care
Confidentiality
Professional behavior/discipline
Leadership
transparency
accountability
sustainability
responsible management

Question 5

Explain integrity as a principle in ethics

Answer 5

This can be described as a quality that a person possesses to be honest and possess strong moral values

Question 6

Explain objectivity/furners as a principle in ethics

Answer 6

It is there ability to behave in partially honestly and without prejudice or bias

Question 7

Explain professional competence and due care as an principle in ethics

Answer 7

Professional competence refers to the ability to your work while and Due care ensures that tasks are done responsibly,carefully,promptly abd diligently

Question 8

Explain confidentiality as a principle in ethics

Answer 8

This refers to the ability to handle information concerning the business

Question 9

Explain professional behaviors/ discipline as a principle in ethics

Answer 9

There’s refers to the manner in which a person behaves in the workplace all members need to behave with restraint and ensure that they are actions are governed by the code of conduct at all times

Question 10

Explain leadership as a principle of ethics

Answer 10

A leader with a responsibility of writing leadership should make sure that their actions and their workers actions comply with the code of ethics/conduct

Question 11

Explain accountability as a principle in ethic

Answer 11

This means that members of an organization should be prepared to take responsibility for the actions in any situation

Question 12

Explain sustainability as a principle in ethics

Answer 12

Are you sources used by the business should be replaceable

Question 13

Explain responsible management as a principle in ethics

Answer 13

People responsible for running the business should behave in a conscientious and trustworthy manner at all times

Question 14

What are the four building blocks of the King IV report

Answer 14

Ethical culture, good results, effective control, and legitimacy

Question 15

What is a king ivy report supposed to focus on

Answer 15

It is supposed to emphasize the 3PS which are people planet and profit . The king IV report is mandatory for all companies listed in the JSE

Question 16

What is a sole proprietorship

Answer 16

It is a business way only one owner contributes all the capital and is entitled to all the profit

Question 17

What is The Entity principle

Answer 17

This is a principle that stay and the business are two separate persons or entities with separate sets of financial records, assets and liabilities.

Though in a sole proprietorship the owner can be kept liable for all incurred expenses in the name of the business

Question 18

What is equity and what is the formula to calculated

Answer 18

Owner’s equity is the owner’s stake in the business it is based of how much capital the owner contributed

formula is equity = assets - liabilities

Question 19

What is another formula for equity

Answer 19

Equity= capital + net profit-withdrawal

Question 20

What are assets

Answer 20

Assets are possessions of the business

Question 21

What are non-current assets or fixed assets

Answer 21

These are assets that I use by the business over a long period of time for examples of this are land and buildings, vehicles, equipment

Question 22

What are financial assets

Answer 22

Financial assets or assets that arise when a business transfers money not needed for a period

Question 23

What are current assets

Answer 23

These are assets of which the value fluctuate every month and that are relatively easy to convert into cash

Question 24

What are the current assets in order of liquidity

Answer 24

1. Inventory/trading stock- goods purchased to be sold at a profit later
2. Debtors control- money owed by debtors to the business
3. Savings account- money in a separate bank account with the aim of earning higher interest without a fixed investment period
4. Bank money in a current account for daily payment via EFT
5. Petty cash- cash amount for necessary cash payments that are made daily
6. Cash float- money in the cash register at the beginning and end of everyday

Question 25

What are liabilities needs to the difference between downtown liabilities and short-term liabilities

Answer 25

Liabilities are parties outside the business to whom the business owes money liabilities equals assets minus equity long-term liability is a debt paid over a period longer than a year and current liabilities are liabilities repaid over a period shorter than a year

Question 26

What is a crj

Answer 26

This is a journal which records any cash received by the business assault documents are DREC,CRR,B/S

Question 27

What is a cpj

Answer 27

A journal which records any payments made from the current bank account the source documents are EFT or B/S

Question 28

What is a pcj

Answer 28

A journal where small cash amounts paid are recorded the source document is PCV petty cash voucher

Question 29

What is a DJ

Answer 29

A journal which records got sold on fiddle the source document is invoice

Question 30

What is a CJ

Answer 30

A journal in which any items purchased on credit are recorded the source document is credit note

Question 31

What is an d a j

Answer 31

A journal which records items return to us by Unsatisfied debtors this was document is a credit note

Question 32

What is a creditors allowance journal

Answer 32

A journal which records items who you return to creditors the source document is Debit note

Question 33

What two sections of the general ledgers split up in

Answer 33

The balance sheet section which consists of all accounts used to prefer the statement of financial position and the nominal consection which consists of all incomes and expenses use to prepare the statement of comprehensive income

Question 34

What are the two financial statements in the accounting report is presented in the financial year

Answer 34

Statement of comprehensive income slash income statement statement and the statement of financial position/ balance sheets

Question 35

What are examples of daily procedures,

Answer 35

Daily procedures include transactions source document completions subsidiary journals completions posting to debtors and creditors ledgers

Question 36

What are examples of monthly procedure

Answer 36

Closing of subsidiary journals posting to the general Ledger preparation of trial balance preparation of debtors and creditors list

Question 37

What are examples of annual procedures

Answer 37

Preparation of financials and analysis and interpretation of financial statement

Question 38

Why are the go principles important for financial recording

Answer 38

They are understandable relevant reliable useful timely free fire go neutral and consistent and comparable

Question 39

What are the GAAP principles

Answer 39

Principles that accounting should follow when they prepare their financial statements

Question 40

Explain the historical cost principle

Answer 40

It is a rule that assets will be valued at the price paid for them originally EG if a building appreciate in value it will still be recorded at the original cost price

Question 41

Explain the principle of matching

Answer 41

Expenses and income should we recorded in the correct financial period and which the occur this means that if a transaction happens in the previous financial year but they expenses or income or not received then it is still recorded as from the last year even though we have not been received

Question 42

What is prudence

Answer 42

Businesses having realistic amounts entered and figures

Question 43

Explain materiality as a principle

Answer 43

Items material enough to affect evaluation or decision should be disclosed separately in the financial statement and all values that appear in the financial statement must have material value

Question 44

Explain going concern as a principle

Answer 44

Financial statements are prepared on the assumption that the business will continue to operate in the foreseeable future

Question 45

Explain business entity element

Answer 45

The owner and the business are set as two different persons or entities with different sets or financial records assets and liabilities

Question 46

Explain business entity element

Answer 46

The owner and the business are set as two different persons or entities with different sets or financial records assets and liabilities