Unit 1 & 2 Flashcards

(7 cards)

1
Q

define transaction

A

and event occurring during the operation of the business which results in a financial change. It is an exchange of things

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2
Q

what is the purpose of accounting?

A

to provide financial information for decision-making

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3
Q

accounting standards are:

A

the principals, rules, and guidelines followed when preparing and presenting accounting information

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4
Q

a public company

A

is listed on the stock exchange and is accountable to the public

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5
Q

a private company

A

does not have shares in the market. it may be owned by one person or a small group of people. it is not accountable to the public

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6
Q

what standards govern:

public companies in Canada?

private companies?

A

a) international financial reporting standards (IFRS)

b) the accounting standards for private enterprises (ASPE)

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7
Q

what are four controls that encourage people to do the right thing in accounting are:

A

laws
business ethics
professional standards
accounting principles and standards

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