WEEK 3

Question 1

Going concern

Answer 1

• The company will remain open for business for the foreseeable future.
• Financial statements must be published while the company is still operating, unless management has no other realistic choice than to sell it, stop trading, or take other action.

Question 2

Historical cost

Answer 2

Assets should be shown on the balance sheet at the cost of purchase instead of current value

Question 3

The cash book

Answer 3

a book of original entry for cash and bank receipts and payments

Question 4

The petty Cash book

Answer 4

( là sổ ghi chép các nghiệp vụ chi tiêu tiền mặt )
Is a small amount of money to meet everyday expenses within the office environment to meet such payments for stationery, travel, postage ,…

Question 5

Imprest amount

Answer 5

is a sum of money that is provided to petty cashier for a certain period which can be a week or month. Reimbursement is done after the end of the period in order to start a new cycle.

Question 6

Why a business might keep a petty cash book as well as the main cash book

Answer 6

Cashbook helps businesses to keep track of small cash transactions like, small purchases or cash expenses that could easily get missing.
It is very important for every business be it micro, small, medium, or large enterprises to adopt a cash book as a part of their Petty Cash fund.