100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
AFM 101 Exam Questions & Answers 2023/2024 $7.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. AFM 101
  4.  
  5. AFM 101

Exam (elaborations)

AFM 101 Exam Questions & Answers 2023/2024
 0 purchase
  • Course
  • AFM 101
  • Institution
  • AFM 101

AFM 101 Exam Questions & Answers 2023/2024 What is the normal form of the accounting equation? - ANSWER-Assets = Liabilities + Owners Equity Define 'Asset' - ANSWER-Anything the company owns and is not mortgaged/ loaned What is an example of an asset? - ANSWER-Paid for stock Define 'l...

[Show more]

Preview 2 out of 6  pages

Document information

  • September 14, 2023
  • 6
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

  • AFM 101
  • AFM 101

Seller

avatar-seller
Bensuda

Reviews received

Content preview

AFM 101 Exam Questions & Answers
2023/2024

What is the normal form of the accounting equation? - ANSWER-Assets = Liabilities + Owners Equity



Define 'Asset' - ANSWER-Anything the company owns and is not mortgaged/ loaned



What is an example of an asset? - ANSWER-Paid for stock



Define 'liability' - ANSWER-Anything that is owed to other people/ businesses



What is an example of a liability? - ANSWER-Bank loan/ mortgage



What is another way to write the accounting equation? - ANSWER-Owner's Equity = Assets - Liabilities



Define equity - ANSWER-What is left over after your assets have 'paid off' your liabilities



What do financial statements consist of? - ANSWER-A balance sheet, an income statement statement of
changes in equity, and a statement of cash flows



What three main elements does a balance sheet consist of? - ANSWER-Assets, liabilities and owners
equity



What does an income statement consist of? - ANSWER-Revenue - (minus) expenses = net profit



What are the two other names that are used for an 'income statement'? - ANSWER-Profit and loss
statement and statement of financial performance

, What does a statement of changes in equity represent? - ANSWER-It represents the owner's interest in
the business.



What three aspects are included in a statement of changes in equity statement? - ANSWER-Personal
funds invested, profits retained in the business and withdrawal of assets the owner may have made



What is the format used for a 'statement of changes in equity'? - ANSWER-Owner's capital = opening
balance + profit + capital introduced - less drawings = owner's capital - closing balance



What does CAMP PEG stand for? - ANSWER-Cost, Accounting period, Matching, Profit recognition,
Prudence principle, Entity concept, Going concern



Define 'cost' - ANSWER-items recorded at their historical cost



Define 'accounting period' - ANSWER-accounting recorded for a specific time (e.g. 1 year)



Define 'matching' - ANSWER-the recording of expenses (inputs) to the same period as the revenues
(outputs) so they match



Define 'profit recognition' - ANSWER-revenue must be recognised in the period in which it was earned



What is another term used for 'profit recognition'? - ANSWER-revenue recognition



Define 'prudence principle' - ANSWER-the recording of revenue only when it is certain and the recording
of expenses only when they are probable



Define 'entity concept' - ANSWER-reports used for a specific entity



Define 'going concern' - ANSWER-accounts produced on the basis that the entity will continue in the
future

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Bensuda. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $7.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67479 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$7.99
  • (0)
Add to cart
Added