Orgainising the Books

What is accounting?

• Preparation of Financial Statements

• System of recording, summarising of transactions; analysing, veriying and reporting results

• An art and a science

• Matching debits and credits

What is the duality concept?

• Transactions have two-fold effect, giving rise to double entry bookkeeping

• Asset = Liability + Owners Equity

• What goes up must come down

• Good things happen in pairs

Which of the following is a financial statements that is not covered in this course?

• Cash Flow Statement

• Balance Sheet

• Income Statement

• Statement of Changes in Equity

What of the following is another name for Balance Sheet?

• Balancing Sheet

• Statement of Financial Position

• Statement of Assets and Liabilities

Which of the following is not an alternative name for Income Statement?

• Revenue and Expenses Statement

• Profit and Loss Statement

• Statement of Income

• Statement of Comprehensive Income

What is the central formula for Balance Sheet?

• Asset + Liability = Owners Equity

• Asset = Liability = Owners Equity

• Assets + Owners Equity = Liability

• Asset = Liability + Owners Equity

Which is not a section of the income statement?

• Revenue

• Gains

• Expenses

• Losses

• Provisions

Indicate order of the various sections in the Statement of Cash Flows : (1) Cash Flow from Investing (2) Cash Flow from​ Operating, and (3) Cash Flow from Financing. ​

• (3), (1), (2)

• (2), (1), (3)

• (1), (2), (3)

What is the correct definition of project budget?

• Reports the flow of resources through a business during an accounting period / project during the project duration

• A plan that details how much to spend, for what, and by when

• A statement which shows an estimate of cash receipts and cash payments arising from planned activities.