ACA [ICAEW] ACCOUNTING – Exam Questions With 100% Correct Answers Latest 2024/2025.
ACA [ICAEW] ACCOUNTING – Exam Questions With 100% Correct Answers Latest 2024/2025. Books of Original Entry - ANSWER 1. Cash Book 2. Sales Day Book (Credit Sales) 3. Purchases Day Book (Credit Purchases) 4. Petty Cash Book 5. Journal Book 6. The Payroll Statement of Financial Position - ANSWER SOFP - Snapshot of assets controlled, liabilities owned and capital at a point in time Statement of Profit and Loss - ANSWER Income and expenses over a period of time The Business entity concept - ANSWER Business transactions should be kept separate from the personal transaction of the owner Qualitative characteristics of financial information - ANSWER Two fundamental concepts 1. Relevance [Assists users in evaluating past and predicting future events + Materiality] 2. Faithful Representation [Neutral; Free from Error; Complete] Four Enhancing Characteristics 1. Verifiability [Can be proven] 2. Timeliness [In time to influence decisions of users] 3. Understandability [Readily understandable by people with reasonable knowledge] 4. Comparability [Consistency] Accrual basis of accounting - ANSWER - Items recognized as assets, liabilities, equity, income and expenses (elements of FS) when they satisfy definitions and recognition criteria for those elements in conceptual framework - Transactions recognized when they occur
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