BSNS115 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++
professional bodies
represent groups of professionally qualified people in specific types of work
financial reports
summarized information about the financial status of a business
the accounting process
identifying, measuring, and communicating economic information about an entity to a
variety of users for decision making purposes
business transactions
External exchange of something of value between two or more entities. Affects assets,
liabilities and equity. Can be reliably measured and recorded.
internal users
accounting info is extremely valuable to an entities owner or management
external users
parties who use info to make decisions about the entity
financial accounting
preparation and presentation of financial statments. allows users to make economic
decisions about the entity
financial statments
directed towards the common information need of a wide range of users
,managerial accounting
accounting used to provide information and analyses to managers inside the
organization to assist them in decision making
GAAP
Generally Accepted Accounting Principles. The standards and rules that accountants
follow while recording and reporting financial activities.
accounting equation
Liabilities + Equity = Assets
Owe + Owner = Own
current assets
cash and other assets expected to be exchanged for cash or consumed within a year
non-current assets
Items owned by the business for more than one year
liability
An amount owed by a business
current liabilities
liabilities due within a short time, usually within a year
non-current liabilities
value of debts of the business that will be payable after more than one year
contingent liabilities
Liabilities that may arise from past transactions if certain events occur in the future.
equity
, a condition in which people receive from a relationship in proportion to what they give to
it
contributed capital
The resources that investors contribute to a business in exchange for ownership interest
retained earnings
An amount earned by a corporation and not yet distributed to stockholders.
drawings
Withdrawal of cash or other assets from an unincorporated business for the personal
use of the owner(s).
dividends
Company's share profits to the shareholders based on the corporation's performance.
income
money received, especially on a regular basis, for work or through investments.
expenses
The cost of assets consumed or services used in the process of generating revenues.
entity concept
The idea that personal financial activity is kept separate from business financial activity
personal transactions
Transactions of the owner unrelated to the operations of the business.
business events
the operating activities performed within a business process to provide goods and
services to customers
double entry accounting
COMPLETE SOLUTIONS GRADED A++
professional bodies
represent groups of professionally qualified people in specific types of work
financial reports
summarized information about the financial status of a business
the accounting process
identifying, measuring, and communicating economic information about an entity to a
variety of users for decision making purposes
business transactions
External exchange of something of value between two or more entities. Affects assets,
liabilities and equity. Can be reliably measured and recorded.
internal users
accounting info is extremely valuable to an entities owner or management
external users
parties who use info to make decisions about the entity
financial accounting
preparation and presentation of financial statments. allows users to make economic
decisions about the entity
financial statments
directed towards the common information need of a wide range of users
,managerial accounting
accounting used to provide information and analyses to managers inside the
organization to assist them in decision making
GAAP
Generally Accepted Accounting Principles. The standards and rules that accountants
follow while recording and reporting financial activities.
accounting equation
Liabilities + Equity = Assets
Owe + Owner = Own
current assets
cash and other assets expected to be exchanged for cash or consumed within a year
non-current assets
Items owned by the business for more than one year
liability
An amount owed by a business
current liabilities
liabilities due within a short time, usually within a year
non-current liabilities
value of debts of the business that will be payable after more than one year
contingent liabilities
Liabilities that may arise from past transactions if certain events occur in the future.
equity
, a condition in which people receive from a relationship in proportion to what they give to
it
contributed capital
The resources that investors contribute to a business in exchange for ownership interest
retained earnings
An amount earned by a corporation and not yet distributed to stockholders.
drawings
Withdrawal of cash or other assets from an unincorporated business for the personal
use of the owner(s).
dividends
Company's share profits to the shareholders based on the corporation's performance.
income
money received, especially on a regular basis, for work or through investments.
expenses
The cost of assets consumed or services used in the process of generating revenues.
entity concept
The idea that personal financial activity is kept separate from business financial activity
personal transactions
Transactions of the owner unrelated to the operations of the business.
business events
the operating activities performed within a business process to provide goods and
services to customers
double entry accounting
