ACCCOB2 Unit 1 Exam Study Guide |
Updated
relevance - Answer-a fundamental characteristic of a financial information which enables it to make
a difference in the decisions made by users
materiality - Answer-omission of such information could influence decisions that users make on the
basis of ...
understandability - Answer✔✔-classifying, characterizing and presenting information clearly and
concisely
going concern - Answer✔✔-assumes that the entity has neither the intention nor the need to liquidate
or curtail materially the scale of its operations
assets - Answer✔✔-a resource controlled by the entity as a result of past events and from which future
economic benefits are expected to flow to the entity
liability - Answer✔✔-a present obligation of the entity arising from past events, the settlement of which
is expected to result in an outflow from the entity of resources embodying economic benefits
equity - Answer✔✔-residual interest in the assets of the entity after deducting all its liabilities
income - Answer✔✔-increases in economic benefits during the accounting period in the form of inflows
or enhancements of assets or decreases of liabilities that result in increases in equity, other than those
relating to contributions from equity participants
expenses - Answer✔✔-decreasing in economic benefits during the accounting period in the form of
outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than
those relating to distributions to equity participants
recognition - Answer✔✔-process of incorporating in the statement of financial position or profit or loss
statement an item that meets the definition of an element
measurement - Answer✔✔-process of determining the monetary amounts at which the elements of the
financial statements are to be recognized and carried in the statement of financial position and profit or
loss statement
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