CIMA BA3 Fundamentals of Financial Accounting Flashcards

What does the Statement of Financial Position show?

What does the Statement of Profit or Loss show?

What is the definition of an asset?

What is the definition of a liability?

What is the definition of gross profit?

What is the separate entity concept?

What is the definition of capital?

What is the definition of drawings (or withdrawals)?

What are non-current liabilities?

What are current liabilities?

What are current assets?

What are non-current assets?

What is the accounting equation?

What is meant by net assets?

Will an increase in an expense be a debit or a credit in the ledger account for the expense?

Will an increase in an asset be a debit or a credit in the ledger account for the asset?

Will drawings be a debit or a credit entry in the drawings account?

Will an increase in a liability be a debit of a credit in the ledger account for the liability?

Will an increase in income be a debit or a credit entry in the ledger account for the income?

Will an increase in capital be a debit or a credit entry in the ledger account for capital?

What is the double entry for the purchase of goods for resale on credit?

What is the double entry for the sale of goods on credit?

What is the main purpose of a trial balance?

Inventory is valued at the lower of which two amounts?

In the context of inventory valuation, what is meant by net realisable value?

What methods of calculating the cost of inventory are allowed by the accounting standard?

Is sales tax a form of direct or indirect taxation?

Is input sales tax the tax charged on purchases or the tax charged on sales?

Is output sales tax the tax charged on purchases of the tax charged on sales?

Is the gross selling price the selling price including or excluding sales tax?

Is the net selling price the selling price including or excluding sales tax?

What is meant by a prepaid expense?

What is meant by accrued income?

What is meant by prepaid income?

What is meant by an irrecoverable debt?

What is the purpose of the allowance for receivables?

What is meant by capital expenditure?

What is meant by revenue expenditure?

What is the difference between tangible and intangible non-current assets?

What is the non-current asset register?

What is the purpose of depreciation?

Do we depreciate the Land and Buildings category?

What is the straight-line method of depreciation?

What is the reducing balance method of depreciation?

When using the straight-line method of depreciation, what is meant by the term residual value?

What is a credit note?

What is meant by a refund?

What is the general (or nominal) ledger?

What is the purpose of a bank reconciliation?

What is an outstanding (unpresented) cheque?

What is an uncleared lodgement (or lodgement not yet credited)?

If a bank statement is showing a debit balance for a company,

What is an overdraft?

What is the difference between the Statement of Comprehensive Income and the Statement of Profit or Loss

What is meant by mark-up?

What is meant by a gross margin?

What does the Statement of Changes in Equity show?

What are the differences between ordinary and preference shares?

What is a rights issue of shares?

What is a bonus (scrip) issue of shares?

What does the share premium account record?

What are revenue reserves?

According to IAS 38 – Intangible assets – how should research be treated in the financial statements?

What are the three main headings that will appear on Statement of Cash Flows?

What items appear on a Statement of Cash Flows under the heading Investing Activities?

What items appear on the Statement of Cash Flows under the heading Financing Activities?

What is the difference between the Direct and Indirect methods of arriving at the ‚cash generated from operations‘ on a Statement of Cash Flows?

Will a bonus issue of shares appear on a Statement of Cash Flows?

Will a surplus on revaluation appear on a Statement of Cash Flows?

Will a rights issue of shares appear on a Statement of Cash Flows?