Financial Account Basics

Questions belonging to this category are listed below. To read the answer of a particular question, then just click on the heading (question itself) and the whole answer will be presented to you. If you think that a question that should have been answered here and have not been answered then you can ask it by using iask! - ASK TUTOR form and our teachers will write a perfect answer for you. You can also use our ACCA F3 discussion forums to discuss your question.? If you like the answer then share it with your friends by clicking LIKE and/or TWEET button.

What are the important Qualitative characteristics of Financial Statements?

By Hasaan Fazal on April 25, 2011

As we understand that different users require financial information for assistance in their economic decisions. Entities publish financial statements so that users can get their information needs fulfilled. The dependence of users’ economic decision on financial statements is crucial and if the financial information is not accurate or is not true and fair then users […]

Posted in ACCA, ACCA - F3, ACCA - F7, CA, CAT, CAT - T3, CAT - T6, CIMA, CIMA C02, Conceptual and Regulatory Frameworks, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Companies, Financial Statements of Sole Traders, Financial Statements of Sole Traders, IAS 1, IASB Framework for Financial Statements, Module B, Module C, Published Accounts | 1 Response

What is the objective of Financial Statements?

By Hasaan Fazal on April 24, 2011

The basic objective of any financial statement is to fulfill information needs of the intended users. However, there are different kinds of financial statements for different purposes. Broadly we can divide the financial statements in two different types: General Purpose Financial Statements Special Purpose Financial Statements As said earlier that the basic objective of every […]

Posted in ACCA, ACCA - F3, ACCA - F7, CA, CAT, CAT - T3, CAT - T6, CIMA, CIMA C02, Conceptual and Regulatory Frameworks, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Companies, Financial Statements of Sole Traders, Financial Statements of Sole Traders, IASB Framework for Financial Statements, Module B, Module C, Published Accounts | Leave a response

Why Financial Statements are prepared on Accrual basis?

By Hasaan Fazal on April 23, 2011

Financial Statements assist internal and external users by providing them financial information which they in making economic decisions. As their decisions are based on financial information underlying financial statements therefore, decision making process depends heavily on the relevance and reliability of financial statements which in simple words mean that if financial statements are not reporting […]

Posted in ACCA, ACCA - F3, ACCA - F7, CA, CAT, CAT - T3, CAT - T6, CIMA, CIMA C02, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Companies, Financial Statements of Sole Traders, Financial Statements of Sole Traders, IAS 1, IASB Framework for Financial Statements, Module B, Module C, Published Accounts | 1 Response

What is Inventory?

By Hasaan Fazal on April 15, 2011

Inventory is simply such asset that business has bought and holds with an intention to be sold in the normal course of the business i.e. it is the business of the entity to buy and sell such assets. The words stock, goods and inventory are used interchangeably and mean one and the same thing. Some […]

Posted in ACCA, ACCA - F3, ACCA - F7, CA, CAT, CAT - T1, CAT - T3, FA1, FA2, FIA, Financial Account Basics, Financial Accounting, Inventory, Module B, Module C, Published Accounts | Leave a response

What are the Fundamental accounting Assumptions underlying Financial Statements?

By Hasaan Fazal on April 4, 2011

Fundamental assumptions, basic assumptions or fundamental accounting assumptions mean the accounting concepts that have been considered and followed while recording financial information. As information needs are different from person to person, entity to entity and situation to situation thus such assumptions vary. But remember one thing fundamental accounting assumptions DOES NOT mean the rules that […]

Posted in ACCA, ACCA - F3, ACCA - F7, Accounting Concepts & Conventions, Accounting Concepts and Policies, CA, CAT, CAT - T6, Conceptual and Regulatory Frameworks, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Sole Traders, Module B, Module C, Published Accounts | Leave a response

What is the difference between revenue, income, profit, gain and return?

By Hasaan Fazal on March 31, 2011

Every student who starts accounting and get an idea of these terms, the instinct of differentiating kicks in and he/she starts looking for the differences among these terms. Though there are sometimes minor and sometimes major differences among these terms but these days, with an exception of few, these terms are used interchangeably. For example, […]

Posted in ACCA, ACCA - F3, ACCA - F7, Accounting Terminologies, CA, CAT, CAT - T1, CAT - T2, FA1, FA2, FIA, Financial Account Basics, Financial Accounting, Module B, Published Accounts | 1 Response

What is the purpose of Statement of changes in equity?

By Hasaan Fazal on March 30, 2011

Many students find it confusing that if we already have two financial statements, one covering the financial position of the business and the other telling about the financial performance then why do we need yet another statement with the name of Statement of Changes in Equity? And more interestingly, many think that its just a […]

Posted in ACCA, ACCA - F3, ACCA - F7, Accounting Concepts & Conventions, CA, CAT, CAT - T1, CAT - T3, CAT - T6, FA1, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Sole Traders, Module B, Module C, Published Accounts, Trial Balances and Financial Statements | Leave a response

Is there any case in which Liability increases and decreases as well?

By Hasaan Fazal on March 26, 2011

In one single transaction there are absolutely NO chances that liability increases and also decreases at the same time. And even for the sake of argument we consider that yes it will increase and decrease then the increase and decrease will be equal thus making no difference at all. However, if the question was asked […]

Posted in ACCA, ACCA - F3, Accounting Concepts & Conventions, CA, CAT, CAT - T1, CAT - T3, FA1, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Module B | Leave a response

Why closing inventory appears on the credit side of Trading account?

By Hasaan Fazal on March 26, 2011

Closing stock or as it is also named as closing inventory is definitely an asset. But trading account is not the same as Inventory account. Inventory, being an asset, should have a debit balance in Inventory account. Trading account is a distinct account and both must not be mixed up together. The answer to the […]

Posted in ACCA, ACCA - F3, ACCA - F7, Accounts & Ledgers, CA, CAT, CAT - T3, CAT - T6, FA1, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Sole Traders, Module B, Module C, Published Accounts, Trial Balances and Financial Statements | Leave a response

What is meant by ‘line item’ in accounting standards?

By Hasaan Fazal on March 26, 2011

Term line item basically refers to such piece of information which has its own weight and should be presented on a separate line on any document. In context of International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs) line items simply means a category on the face of financial statements and in the notes […]

Page 2 of 3«123 »