Accounting

MindBlowingJade avatar
By MindBlowingJade

Quiz

Flashcards

339 Questions

What is the primary purpose of accounting?

What is the definition of accounting?

What is the most commonly used method of accounting?

What is the most commonly used method of accounting?

What is the most commonly used method of accounting?

What is the purpose of the trial balance?

What is the purpose of the trial balance?

What is the purpose of financial statements?

What is the purpose of financial statements?

What is the International Accounting Framework composed of?

Which of the following is NOT a part of the International Accounting Framework?

Which of the following is NOT a document included in the International Accounting Framework?

What determines the classification of current vs. non-current assets and liabilities?

What determines the classification of assets and liabilities as current or non-current?

What determines the classification of assets and liabilities as current or non-current?

What is the purpose of a balance sheet?

What is the purpose of a balance sheet?

Which of the following is an example of an intangible asset?

What is the definition of intangible assets?

What is the definition of intangible assets?

What are investments?

What are investments?

What is the difference between trade receivables and notes receivables?

Which financial reporting standards govern the rules for receivables?

Which financial standard(s) govern(s) the treatment of receivables?

What is VAT?

What is VAT?

Which of the following inventory evaluation methods is not allowed by IAS 2?

Which inventories require impairment under IAS 2?

Which of the following is a requirement of IAS 2 for inventories that are damaged or obsolete?

What are transactions in accounting?

What are transactions?

What is the difference between cash basis and accrual basis accounting?

What does the accrual basis of accounting record?

What are the two methods of accounting?

What are the components of the statement of financial position?

What are the components of the statement of financial position?

When did the move towards a global accounting system begin?

Who regulates the preparation of financial statements?

Which of the following documents are included in the set of international accounting standards?

What are the primary qualitative characteristics of financial statements according to the Conceptual Framework?

Which of the following are the primary qualitative characteristics of financial statements according to the Conceptual Framework?

Do post balance sheet events affect the classification of assets and liabilities as current or non-current?

Do post balance sheet events affect the classification of assets and liabilities as current or non-current?

What are fixed assets?

What are fixed assets?

Which accounting standard is applied to every intangible asset except for goodwill, financial assets, deferred tax assets, assets held for sale, and assets arising from specific industries?

Which of the following is an example of an intangible asset?

Which of the following is an example of an intangible asset?

Which of the following is not a classification of investments?

How can investments be classified?

Which model of credit loss was introduced under IFRS 9?

Where are trade receivables classified in the balance sheet?

What do trade receivables represent?

Who charges VAT?

Who charges VAT?

What is the basis for estimating net realizable value of inventories?

How is net realizable value estimated under IAS 2?

What is the basis for estimating net realizable value?

What are the different types of transactions in accounting?

What types of transactions can occur?

What is double entry bookkeeping?

What are the three rules of accounting?

When does cash basis recognize revenues and expenses?

What is the net worth of a firm?

What is the difference between assets and liabilities?

What are the two approaches to even out financial information globally?

When did the move towards a global accounting system begin?

What are the two parts of each IAS/IFRS?

Which of the following is NOT an enhancing qualitative characteristic of financial statements according to the Conceptual Framework?

Which of the following is NOT one of the enhancing qualitative characteristics of financial statements according to the Conceptual Framework?

What does the statement of comprehensive income include?

What does the Statement of Comprehensive Income include?

What does the statement of comprehensive income include?

What are the types of fixed assets?

Which of the following is not a type of fixed asset?

What is the main requirement for an intangible asset to be recognized?

Which standard is applied to every intangible asset except for goodwill, financial assets, deferred tax assets, assets held for sale, and assets arising from specific industries?

Which standard is applied to every intangible asset except for goodwill, financial assets, deferred tax assets, assets held for sale, and assets arising from specific industries?

What are subsidiaries?

What are subsidiaries?

What is the purpose of an allowance for bad debts?

What are notes receivables?

How are notes receivables reported in financial statements?

When is VAT generated?

When is VAT generated?

How often must impairment be reassessed for inventories?

Is impairment a one-time event or must it be repeated in subsequent periods?

What are monetary events in accounting?

What are monetary events?

What are the three rules of accounting?

What is the purpose of ledger accounts?

What does accrual basis record?

What is the purpose of financial statements?

Which financial statement shows the company's revenue, expenses, and net income over a period of time?

What is the aim of the journey towards a universal accounting language?

What are the two approaches to even out financial information globally?

What are the primary qualitative characteristics included in the Conceptual Framework?

What is the cost constraint in the Conceptual Framework?

Which of the following is NOT a distinctive element of financial statements?

Can income and expenses be presented in one statement or two statements?

How can income and expenses be presented in financial statements?

How many statements can income and expenses be presented in?

How are PP&E initially measured?

How are PP&E initially measured?

What criteria must intangible assets arising from the development phase of an internal project meet to be recognized?

What is the requirement for an intangible asset to be recognized?

What is the main requirement for an intangible asset?

What are associates?

What are associates?

What is factoring?

How are notes receivables reported?

What is the expected credit loss (ECL) model?

How is VAT calculated?

What is the net difference of VAT on purchases and sales?

What does equity represent?

Which inventory evaluation methods are allowed under IAS 2?

Which inventory evaluation methods are allowed by IAS 2?

What are non-monetary events in accounting?

What are non-monetary events?

What is the purpose of ledger accounts?

What is the difference between debits and credits?

What is double entry?

What are the four main types of financial statements?

What do explanatory notes provide in financial statements?

Who systematized the accounting system in the 15th century?

What is the aim of the journey towards a universal accounting language?

Which of the following is an enhancing qualitative characteristic included in the Conceptual Framework?

Which of the following is a distinctive element of financial statements?

Which of the following is NOT included in the financial statements prescribed by IAS 1?

What information does the cash flow statement provide?

What information does the Cash Flow Statement provide?

What information does the cash flow statement provide?

What regulates PP&E accounting?

What regulates PP&E accounting?

When should the cost of an intangible asset be recognized as an asset?

What criteria must intangible assets arising from the development phase of an internal project meet to be recognized?

What criteria must intangible assets arising from the development phase of an internal project meet to be recognized?

What are joint ventures?

What are joint ventures?

What is the difference between factoring with recourse and factoring without recourse?

What do credit notes do?

What is factoring?

What are inventories?

What are inventories?

What information must be disclosed about equity according to IAS 1?

What does equity represent?

What does equity represent?

What does the business cycle involve?

What does the business cycle involve?

What do debits and credits refer to in accounting?

What is the balance in accounting?

What are the three rules of accounting?

What is the purpose of the statement of financial position?

What is the purpose of financial statements?

In which country was the financial statement first viewed as a source of protection for social creditor rights in the 17th century?

Who systematized the accounting system in the 15th century?

Is the cost constraint considered a qualitative characteristic in the Conceptual Framework?

What is the balance sheet equation?

Which of the following is NOT included in the notes to financial statements prescribed by IAS 1?

What information is included in the notes to the financial statements?

What information is included in the Notes to the Financial Statements?

What information is included in the notes to the financial statements?

What is depreciation?

What is depreciation?

How should an entity assess the probability of expected future economic benefits of an intangible asset?

Under what condition shall the cost of intangible assets be recognized as an asset?

When should the cost of intangible assets be recognized as an asset?

How can investments be evaluated?

How can investments be evaluated?

What is the purpose of IFRS 15?

How are account receivables recorded at initial recognition?

What is the difference between factoring with and without recourse?

What is net realizable value?

What is net realizable value?

What does the statement of changes in equity show?

What does IAS 1 require disclosure of within equity?

What does IAS 1 require disclosure of within equity?

What is external financing in accounting?

What is the difference between external and internal financing?

What is the balance in accounting?

What is the structure of a ledger?

What is required for every business transaction?

What are financial statements?

Which type of financial statement shows the company's cash receipts and payments over a period of time?

When was the Securities and Exchange Commission (SEC) established in the US?

In which century was the financial statement first viewed as a source of protection for social creditor rights in France?

What do financial statements give a true representation of?

Which statement is NOT included in the set of general purpose financial statements under IFRS?

Which of the following is NOT required for fair presentation of financial statements according to IAS 1?

What does IAS 8 cover?

What does IAS 8 cover?

What does IAS 8 cover?

What is carrying amount?

What is carrying amount?

What are the two accounting models to evaluate intangible assets?

How should an entity assess the probability of expected future economic benefits of an intangible asset?

How should an entity assess the probability of expected future economic benefits of an intangible asset?

What are impairment tests used for?

What are impairment tests?

What is the net realizable value of notes receivables?

What is the allowance for bad debts?

What is secured borrowing?

What is fair value?

What is fair value?

What is the impact of IAS 8 adjustments on retained earnings?

What does the statement of changes in equity show?

What does the statement of changes in equity show?

How are fixed assets recorded in accounting?

How are fixed assets recorded?

What is included in a ledger?

How are transactions recorded in the ledger?

What do ledger accounts summarize?

What are explanatory notes?

What is the net worth of a company?

When was the Financial Accounting Standard Board (FASB) established in the US?

When was the Securities and Exchange Commission (SEC) established in the US?

What are the distinctive elements of financial statements?

What is the purpose of notes in financial statements?

Which of the following is NOT required for presentation and classification of financial statements according to IAS 1?

What does IFRS 8 require disclosure of?

What does IFRS 8 require disclosure of?

What does IFRS 8 require?

What is recoverable amount?

What is recoverable amount?

When does the depreciation of an intangible asset begin and end?

How many accounting models are there to evaluate intangible assets?

How many accounting models are there to evaluate intangible assets, and what are they?

What does IFRS 9 distinguish between?

What does IFRS 9 distinguish between?

What is the consequence of accounts receivable being unrecoverable?

What is the result of accounts receivable not being recoverable?

What happens to the risks of bad debts in secured borrowing?

Which of the following is covered under IAS 2?

Which items are excluded from IAS 2?

Who decides on dividends and how do they impact equity?

What do adjustments required by IAS 8 require adjustments to?

What is the impact of adjustments required by IAS 8 on retained earnings?

What is inventory in accounting?

What is inventory?

How is a bank account ledger balanced?

What is the purpose of the bank account ledger?

How do journal entries and ledger accounts affect financial statements?

What is the purpose of the cash flow statement?

Which financial statement shows the value of the company's assets, liabilities, and equity at a particular point in time?

When was the International Accounting Standards Board (IASB) established?

When was the Financial Accounting Standard Board (FASB) established in the US?

What is the balance sheet equation?

Which assumption is necessary for financial statements according to IFRS?

Which of the following is NOT a primary component of the balance sheet equation?

What does IFRS 1 regulate?

What does IFRS 1 regulate?

What does IFRS 1 regulate?

What is entity-specific value?

What is entity-specific value?

What is the basis for determining the useful life of an asset?

What does the depreciation of intangible assets depend on?

What does the depreciation of intangible assets depend on?

What is terminal value?

What does terminal value express?

What is the purpose of IFRS 9?

What did IFRS 9 replace for banks after the financial crisis of 2008?

What is allowance for bad debts?

How are inventories evaluated?

How are inventories evaluated?

What types of items are represented in OCI and specific reserves in equity?

Who decides dividends?

Who decides on dividends and how do they impact equity?

What is bookkeeping in accounting?

What is bookkeeping?

How is the bank account ledger balanced?

What is the balance?

What is the purpose of recording transactions in the moment in which they occur?

What are the four main types of financial statements?

When did Italy adopt all IASB documents?

When was the International Accounting Standards Board (IASB) established?

Which IAS prescribes the basis for presentation of financial statements for comparability?

Which basis is used for transactions and events in financial statements according to IFRS?

Which of the following is NOT a mandatory part of an IAS/IFRS?

How should differences between IFRS and local GAAP be recorded?

How should differences between IFRS and local GAAP be recorded?

How should differences between IFRS and local GAAP be recorded?

When should the residual value and useful life of an asset be reviewed?

When should the residual value and useful life of an asset be reviewed?

What is the main difference between the depreciation of an intangible asset with a defined useful life and one with an undefined useful life?

What happens to an intangible asset with an undefined useful life?

What happens to an intangible asset with an undefined useful life?

What are impairment tests required for?

What is the purpose of impairment tests?

What is the expected credit loss (ECL) model?

What is the consequence of unrecoverable accounts receivable?

What are FIFO and weighted average cost?

What are FIFO and weighted average cost?

What is represented in OCI and specific reserves in equity?

What types of items are represented in OCI and specific reserves in equity?

What is the purpose of double entry bookkeeping in accounting?

What is double entry bookkeeping?

What is the purpose of journal entries and ledger accounts?

What is included in the ledger structure?

When should transactions be recorded?

When did Italy make IFRS mandatory for public companies and those within the scope of consolidation?

When did Italy adopt all IASB documents?

Which of the following statements are included in general purpose financial statements under IFRS?

Which of the following is NOT required for presentation of financial statements under IFRS?

Which of the following is NOT an element of the International Accounting Framework?

Is it required for financial statements to always be comparable under IFRS?

What must be prepared at the date of transition to IFRS?

What is the purpose of OIC 11?

What is the purpose of impairment tests?

How are land and buildings accounted for?

What is the main difference between Italian GAAP and IAS 38 regarding the revaluation model for intangible assets?

What is the basis for determining the useful life of an asset?

What is the difference between Italian GAAP and IAS 38 regarding intangible assets?

Which of the following is not a classification of investments according to the text?

What is the difference between subsidiaries and associates?

What is factoring?

Why are inventory journal entries important?

Why are inventory journal entries important?

How many items must be included in the disclosure requirements for equity according to the text?

How many items must be included in the summarization services disclosure requirements?

What is the balance sheet in accounting?

What is the balance sheet?

Which companies cannot use IFRS?

When did Italy make IFRS mandatory for public companies and those within the scope of consolidation?

What information is included in financial statement notes?

What is required for fair presentation of financial statements according to IFRS?

Which of the following is NOT one of the primary qualitative characteristics of financial statements according to the Conceptual Framework?

What must be prepared at the date of transition to IFRS?

Where are the golden rules for preparing Italian financial statements found?

What are the fundamental elements of Italian financial statements?

What is the derecognition of PPE?

What does OIC 16 not allow?

What is the difference between Italian GAAP and IAS 38 regarding intangible assets?

Which of the following is not a method for evaluating investments according to the text?

What is the difference between factoring with and without recourse?

How are costs for unsold or unproduced items accounted for?

How are costs for unsold or unproduced items adjusted?

How do the disclosure requirements for equity in the text compare to those in IAS/IFRS?

What are the nine items that must be included in the disclosure requirements for summarization services?

Summary

  1. Accounting involves the classification and recording of monetary transactions.
  2. Transactions are events that cause a change in a company's financial position.
  3. Transactions can be cash, credit, barter, or paper transactions.
  4. Monetary events involve a transfer of money and result in a change in the company's financial position.
  5. Non-monetary events are not related to any exchange of money.
  6. The business cycle involves financing, purchasing fixed and current assets, processing and producing, and selling finished goods.
  7. External financing involves receiving money from an external institution, while internal financing involves receiving money from shareholders.
  8. Fixed assets are recorded as assets, while current expenses are recorded as costs.
  9. Inventory is the recording of all finished products and raw materials at the end of the year.
  10. Bookkeeping is the routine recording of business transactions.
  • Double entry bookkeeping records transactions in a replicable manner
  • Business transactions bring a double change in financial position
  • Assets represent valuable things a company owns
  • Liabilities represent obligations claimed by creditors
  • Equity represents dotation of capital received by owners
  • Changes in assets must be reflected in equal measure in liabilities and equity
  • Balance sheet shows financial position at a specific point in time
  • Income statement summarizes results of operating for a period of time
  • Income statement records all costs and revenues during a period
  • Revenue and expenses are recorded in the income statement.

Description

Test your knowledge of basic accounting concepts with this informative quiz. From understanding the different types of transactions to the principles of double-entry bookkeeping, this quiz covers it all. Get ready to dive into the business cycle, learn about assets, liabilities, and equity, and discover how to read a balance sheet and income statement. Whether you're a business student or simply interested in learning more about accounting, this quiz is the perfect way to test and expand your knowledge.

Make Your Own Quiz

Transform your notes into a shareable quiz, with AI.

Get started for free

More Quizzes Like This

Functions of Accounting Quiz
10 questions
Functions of Accounting Quiz
MatchlessSeaborgium avatar
MatchlessSeaborgium
Financial Accounting Basics Quiz
6 questions