BSNS115 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED LATEST UPDATE
what is accounting
the process of identifying measuring and communicating economic information for
decision making purposes
Accounting as an information system
information identification - info recording - info analysis - info reporting
Internal users of accounting
Extremely valuable to an entity owner or management - working in the org
External users:
Parties outside outside the entity eg: government, customers, suppliers, shareholders
(they supply money for the business)
what is management accounting
for the internal users, planning a making decision daily
recording a cashflow management or financial ?
f
anaylsing how many products we need to start making profit management or
financial ?
m - because its analysing
calculating profit for the period management or financial ?
f
The limitations of financial statements
, Time lag, historical information, subjectivity of information, generally accepted
accounting principles (GAAP), information costs, release of competitive information
The conceptual framework and the qualitative characteristics
relevance, reliability, understandability and comparability
Materiality and the cost benefit trade off
Lower levels of materiality cost more because they require more audit effort,
internal and external auditing
Internal measures current performance and finds areas for improvement.
External provides the accuracy and veracity of financial statements
The 5 accounting elements
(Income, expenses, assets, liabilities and equity)
The accounting equation
A+L=E
double entry accounting
transactions are recorded in terms of debits and credits
What is Depreciation
systematic allocation of the cost of an asset over its useful life
depreciation formula
(cost−residaul life)/ years
The Balance sheet format
Current asset, non current assets - current lib, non current lib= net assets
owners equity
SOLUTIONS VERIFIED LATEST UPDATE
what is accounting
the process of identifying measuring and communicating economic information for
decision making purposes
Accounting as an information system
information identification - info recording - info analysis - info reporting
Internal users of accounting
Extremely valuable to an entity owner or management - working in the org
External users:
Parties outside outside the entity eg: government, customers, suppliers, shareholders
(they supply money for the business)
what is management accounting
for the internal users, planning a making decision daily
recording a cashflow management or financial ?
f
anaylsing how many products we need to start making profit management or
financial ?
m - because its analysing
calculating profit for the period management or financial ?
f
The limitations of financial statements
, Time lag, historical information, subjectivity of information, generally accepted
accounting principles (GAAP), information costs, release of competitive information
The conceptual framework and the qualitative characteristics
relevance, reliability, understandability and comparability
Materiality and the cost benefit trade off
Lower levels of materiality cost more because they require more audit effort,
internal and external auditing
Internal measures current performance and finds areas for improvement.
External provides the accuracy and veracity of financial statements
The 5 accounting elements
(Income, expenses, assets, liabilities and equity)
The accounting equation
A+L=E
double entry accounting
transactions are recorded in terms of debits and credits
What is Depreciation
systematic allocation of the cost of an asset over its useful life
depreciation formula
(cost−residaul life)/ years
The Balance sheet format
Current asset, non current assets - current lib, non current lib= net assets
owners equity
