Which fundamental accounting principle requires that revenue is recognised when it is earned rather than when cash is received?
Accounting Principles
Question · Easy
Why a balance sheet balances
Short
What makes financial information a faithful representation?
Accounting principles underlying final accounts
Flashcard
Under the going concern concept, financial statements are prepared on the assumption that the business will:
___ concern: the assumption that a business will keep trading for the foreseeable future instead of being liquidated.
Accounting principles
Guess the Term
Chapter 1: Accounting Principles & Ethical Framework
1.1 Fundamental Accounting Concepts & Assumptions
Study guide
Cheat sheet
The qualitative characteristic of financial information that requires it to be free from material error and bias is best described as:
Question · Medium
Read the clue and guess the term in 6 tries.
Game
What does the going-concern assumption mean?
Which accounting principle states that a business is treated as separate and distinct from its owner for accounting purposes?
Book of account holding the main asset, liability, capital, income and expense accounts, supported by subsidiary receivable and payable records.
Double-entry bookkeeping
An item is described as material if:
How does accrual accounting differ from cash accounting?
Which body issues the International Financial Reporting Standards (IFRS) used as the basis for AAT financial statements terminology?
Charge on consumer spending collected on business transactions, imports and acquisitions in the UK and Isle of Man.
1.2 Regulatory Framework & IAS/IFRS Terminology
Under the historical cost convention, a non-current asset is normally recorded in the financial statements at:
Swap tiles to line up three of the same term.
Term Match
A sole trader buys equipment for £4,000 cash. How does the accounting equation change?
Advanced double-entry bookkeeping
The accounting equation can be expressed as:
Long-term resource, tangible or intangible, tracked in its own register and depreciated over its useful life.
Capital expenditure
Which of the following best describes the consistency concept?
Which side normally holds asset, expense and drawings balances?
Capital expenditure is best described as expenditure that:
Advanced Bookkeeping
Positive difference between the net disposal proceeds and the carrying amount when a non-current asset is derecognised.
1.3 Professional Ethics & the AAT Code of Conduct
A business pays GBP 4,000 to install new machinery and GBP 600 to repair an existing machine. The correct treatment is:
Flip two cards at a time to find matching terms.
Term Pairs
A VAT-registered trader buys goods on credit for £600 plus recoverable VAT of £120. What is the entry?
Goods costing GBP 500 were taken by the owner for personal use. The correct double entry is:
Useful ___: how long an asset is expected to remain usable, or the output expected from it.
Depreciation
In the books of a business, the journal is primarily used to:
A customer also supplies the business. What entry records an agreed £350 contra?
A sole trader introduces GBP 10,000 of their own money into the business bank account. The double entry is:
Total of purchase, conversion and other amounts needed to bring inventory to its present location and condition.
Period-end adjustments
Chapter 2: Advanced Double-Entry Bookkeeping & Control Accounts
2.1 Capital vs. Revenue Expenditure & Prime Entry Books
Which of the following is a book of prime entry rather than part of the double-entry ledger?
Find five hidden terms in a grid of letters.
Term Search
Why might a receivables control balance differ from the customer-ledger total?
The receivables ledger control account had an opening balance of GBP 12,000. During the period credit sales were GBP 45,000 and receipts from customers were GBP 41,000, with discounts allowed of GBP 500. What is the closing balance?
Amount an item is expected to fetch in normal trade, after deducting what it still costs to finish and sell it.
A contra entry between the receivables and payables ledgers will:
Which purchase costs belong in the cost of a non-current asset?
Acquisition and disposal of non-current assets
The payables ledger control account shows a balance of GBP 8,200 but the list of supplier balances totals GBP 8,000. Which error could explain the difference?
Question · Hard
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