ACF 100: Book keeping Latest Version Exam And Answered Question2024.

Accountability - correct answer Management's responsibility to provide an account/report on the way in which the resource entrusted to them have been used. Appropriation Account - correct answer The profit or loss for the period is typically apportioned between the partners using an appropriation account. Typically included at the base of the statement of profit and loss Available-for-sale Assets - correct answer Investments denominated in money or in paper i.e shares and bonds that the entity holds for financial gain and which will be sold by the entity in the future SOFP/Balance Sheet - correct answer Statement that identifies the net worth of the entity. Provides information on what the entity owns (assets) and what the entity owes (liabilities) Comparatives - correct answer Prior year figures Cost of Services - correct answer Includes expenses directly related to the goods/services sold by the business Current Assets - correct answer (i) cash and cash equivalents expected to turn into cash in 12 months (ii) other assets expected to turn into cash in 12 months (iii) all assets intended for sale/consumption as part of the entity's normal trading activities of the business Current Liabilities - correct answer obligations that the entity has to meet in the future. Liabilities that are due to be settled within 12 months that are incurred as part of the firm#s normal trading activities are called current liabilities. Economic Decision-Making - correct answer Facilitates efficient and effective allocation of resources Expenses - correct answer Decreases in economic benefits during the accounting period in the form of outflows of depletion. (Yearly running costs) Revenue - correct answer income earned in the period from normal trading activities Financial Accounting - correct answer preparation reports for external stakeholders Management Accounting - correct answer preparation of reports for internal management purposes Statement of Profit or loss/comprehensive income - correct answer outlines the income for the period and expenses for the period non-current assets (fixed assets UK) - correct answer Assets typically held for periods that extend beyond one year and include tangible, intangible and long-term financial assets Inventory - correct answer The name for goods that have been purchased as part of the operating activities but are not yet sold Trade Receivable (debtor) - correct answer Term given to money that is owed from a customer, to whom the entity has sold goods on credit as part of its operation activities. (the goods were given in advance of the entity receiving money for the goods) Trade Payable (creditor) - correct answer Money owed to a supplier who provided trade goods on credit. Tangible Fixed Assets - correct answer property, plant, and equipment Income - correct answer Increases in economic benefits during