BUDGETING AND ACCOUNTING
EXAM WITH CORRECT ANSWERS
Assets v= vLiabilities v+ vOwners vEquity v- vcorrect vanswers v-...
Net vIncome v- vcorrect vanswers v-Revenue v- vExpenses v= vNet vIncome
Reports vOwner's vwant vto vsee vmost v- vcorrect vanswers v-Balance vSheet
Income vStatement
Change vin vCash vFlow
Bookkeeping v- vcorrect vanswers v-The vprocess vof vrecording vand vclassifying
vtransactions.
Four vAccounting vCycles v- vcorrect vanswers v-Revenue
Expenditure
Capital v
Conversion
Budgeting v& vAccounting vReporting vMethods v- vcorrect vanswers v-Accrual vBasis
vAccounting
Cash vBasis vAccounting
, Modified vAccrual
Assets v- vcorrect vanswers v-Total vLiability v+ vOwner's vEquity
Asset v- vcorrect vanswers v-On vLeft/ vDebit vBalance
Anything vof vvalue
Liability v- vcorrect vanswers v-On vRight/ vCredit vBalance
A vdebt vthat vis vowed
Current vAsset v- vcorrect vanswers v-anything vof vvalue vthat vcan vbe vconverted vto
vcash vwithin v30-60 vdays.
Fixed vAsset v- vcorrect vanswers v-LAND
Balance vSheet v- vcorrect vanswers v-A vstatement vof vthe vfinancial vposition vof va
vbusiness ventity vat va vparticular vpoint vin vtime, vreflecting vthe vaccounting vequation.
Financial vStatement v- vcorrect vanswers v-A vset vof vreports vthat vconsists vof van
vincome vstatement, va vbalance vsheet vand va vcash vflow vstatement.
Accrual vBasis vAccounting v- vcorrect vanswers v-Adjusts vcash vactivity vfor vcurrent
vperiod vactivity v(recognizes vincome vwhen vearned vand vexpenses vwhen vincurred).
Cash vBasis vAccounting v- vcorrect vanswers v-Income vand vexpenses vare vrecorded
vonly vwhen vreceived/ vpaid vout.
Cash vFlow vStatement v- vcorrect vanswers v-A vreport vthat vdescribes vthe vchanges vin
vcash vfrom vone vperiod vto vthe vnext.
General vJournal v- vcorrect vanswers v-A vsheet vor vbook vwhere vtransactions vare
vrecorded vin vchronological vorder.
Cash vJournal v- vcorrect vanswers v-A vlisting vof vall vexpenditures vand vreceipts vfor
veach vbusiness vday vand vthe vresulting veffect von vthe vbank vbalance.
Modified vAccrual v- vcorrect vanswers v-Some vrevenues vand vexpenses vdeclared von
va vcash vbasis vand vsome vdeclared von van vaccrual vbasis.
Accounts vReceivable v- vcorrect vanswers v-Monies vearned vbut vnot vyet vreceived
vwhich vare vrecorded vas vassets von vthe vbalance vsheet.
Accounts vPayable v- vcorrect vanswers v-Debts vowned vto vother vbusinesses vand
vrecorded vas vliabilities von vthe vbalance vsheet.
EXAM WITH CORRECT ANSWERS
Assets v= vLiabilities v+ vOwners vEquity v- vcorrect vanswers v-...
Net vIncome v- vcorrect vanswers v-Revenue v- vExpenses v= vNet vIncome
Reports vOwner's vwant vto vsee vmost v- vcorrect vanswers v-Balance vSheet
Income vStatement
Change vin vCash vFlow
Bookkeeping v- vcorrect vanswers v-The vprocess vof vrecording vand vclassifying
vtransactions.
Four vAccounting vCycles v- vcorrect vanswers v-Revenue
Expenditure
Capital v
Conversion
Budgeting v& vAccounting vReporting vMethods v- vcorrect vanswers v-Accrual vBasis
vAccounting
Cash vBasis vAccounting
, Modified vAccrual
Assets v- vcorrect vanswers v-Total vLiability v+ vOwner's vEquity
Asset v- vcorrect vanswers v-On vLeft/ vDebit vBalance
Anything vof vvalue
Liability v- vcorrect vanswers v-On vRight/ vCredit vBalance
A vdebt vthat vis vowed
Current vAsset v- vcorrect vanswers v-anything vof vvalue vthat vcan vbe vconverted vto
vcash vwithin v30-60 vdays.
Fixed vAsset v- vcorrect vanswers v-LAND
Balance vSheet v- vcorrect vanswers v-A vstatement vof vthe vfinancial vposition vof va
vbusiness ventity vat va vparticular vpoint vin vtime, vreflecting vthe vaccounting vequation.
Financial vStatement v- vcorrect vanswers v-A vset vof vreports vthat vconsists vof van
vincome vstatement, va vbalance vsheet vand va vcash vflow vstatement.
Accrual vBasis vAccounting v- vcorrect vanswers v-Adjusts vcash vactivity vfor vcurrent
vperiod vactivity v(recognizes vincome vwhen vearned vand vexpenses vwhen vincurred).
Cash vBasis vAccounting v- vcorrect vanswers v-Income vand vexpenses vare vrecorded
vonly vwhen vreceived/ vpaid vout.
Cash vFlow vStatement v- vcorrect vanswers v-A vreport vthat vdescribes vthe vchanges vin
vcash vfrom vone vperiod vto vthe vnext.
General vJournal v- vcorrect vanswers v-A vsheet vor vbook vwhere vtransactions vare
vrecorded vin vchronological vorder.
Cash vJournal v- vcorrect vanswers v-A vlisting vof vall vexpenditures vand vreceipts vfor
veach vbusiness vday vand vthe vresulting veffect von vthe vbank vbalance.
Modified vAccrual v- vcorrect vanswers v-Some vrevenues vand vexpenses vdeclared von
va vcash vbasis vand vsome vdeclared von van vaccrual vbasis.
Accounts vReceivable v- vcorrect vanswers v-Monies vearned vbut vnot vyet vreceived
vwhich vare vrecorded vas vassets von vthe vbalance vsheet.
Accounts vPayable v- vcorrect vanswers v-Debts vowned vto vother vbusinesses vand
vrecorded vas vliabilities von vthe vbalance vsheet.
