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accounting and finance mct exam with correct solutions 2024

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Accounting and finance mct

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Accounting And Finance Mct

what is accounting? correct answers the language of business: -identification -recording -communication -analyse and interpret types of accounting systems correct answers Financial accounting-published financial statements and other reports (external) Managerial accounting- informatio...

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accounting and finance mct

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accounting and finance mct

what is accounting? correct answers the language of business:
-identification
-recording
-communication
-analyse and interpret

types of accounting systems correct answers Financial accounting-published financial
statements and other reports (external)

Managerial accounting- information for decision making and control of an organisation
operations (internal)

main elements in accounting correct answers -assets
-liability
-equity
-income
-expenses

what is assets? correct answers -resources a businesses owns or controls
-provides future benefits

what is liability? correct answers -obligation to transfer economic benefits as a result of
past events
-money owed

what is equity? correct answers -residual interest in the assets of an entity that remains
after deducting its liabilities
-eg share capital

what is business entity? correct answers the business is separate from its owners

what is historical cost? correct answers transactions are recorded at the cost when they
occurred (cost when bought)

What is going concern? correct answers when preparing expect the firm is continuing in
the future

what is accruals? correct answers revenue and cost must be recognised when they are
earned not when received

, what is consistency? correct answers the presentation and classification must stay the
same from one period to the next

what is materially? correct answers should represent information ethically, relevant and
correct as could influence economic decisions

what are the 4 components of a financial statement? correct answers 1.financial
position
2.profit and loss and other incomes
3.changes in equity
4.cash flows

what is fundamental as a qualitative characteristic? correct answers -relevance to
stakeholders
-faithful representation

what is enhancing qualitative characteristics? correct answers -comparability
-verifiability
-understandability
-timeliness

what is the basic accounting equation? correct answers Assets = Liabilities + Equity

what is the statement of financial position? correct answers -provides a snapshot of the
financial condition of the financial position for a year to determine if it's weak or strong

what is equity equation? correct answers shareholders capital + retained earnings

what is retained earnings equation? correct answers revenues- expenses- dividends

what is monetary unit? correct answers include in accounting records, only transactions
data can be expressed in terms of money

what is economic entity? correct answers requires the activities of the entity to be kept
separate from the activities of the owners and other economic entities

what is the purpose of the income statement? correct answers -reports profitability of
operations over a specific period of time
-shows net profit or loss

Profit Equation correct answers total revenue - total expenses

how is profit and loss statement useful? correct answers -shows performance over
period and can be compared to others
-provides basis for predicting the future
-helps assess risk of future cash flow

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