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Practice questions for this set
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• Research costs are charged to SPL.
• Certain criteria met, development expenditure must be shown as a NCA on
SFP.
• If the case, amortisation used to to reflect use of asset when recorded.
Choose an answer
1 Accounting 2 Code of Ethics (IFAC)
3 Types of Business Entity 4 Properties of R&D expenditure
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, Terms in this set (81)
Accounting A way of recording, analysing and summarising
transactions of an entity.
Statement of Profit and Loss It reflects the performance of a business over a
period of time.
Statement of Financial Position It reflects the position of a business at a point in
time.
Users of Accounting Any organisation/business/individual who needs to
keep track of their income, expenses, assets and
liabilities.
Types of Business Entity • Sole trader
• Partnership
• Limited Liability Companies
SOFP A list of assets and liabilities of the business.
SPL The revenue and expense of a business for the
accounting period.
Purpose of SOFP To show the total value of the net assets of the
business at the end of a period.
Purpose of SPL To show the amount of profit and loss that the
business has made during that period.