U3 AOS 2 - Determining profit or loss

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Across
  1. 2. Decreases in assets or increases in liabilities that result in a decrease in owner's equity, other than those relating to distributions to the owner.
  2. 6. Capital contributions and drawings are not included in the calculation of profit because of this assumption.
  3. 7. Decreases assets (cash at bank) and decreases owner's equity and is reported in the Income Statement as part of 'Other expenses'.
  4. 9. Revenue that decreases liabilities and increases owner's equity.
  5. 10. Increases assets and owner's equity.
Down
  1. 1. Qualitative characteristic achieved by using the accrual basis assumption to include only revenues earned and expenses incurred in the current period, improving decision‑making.
  2. 3. Revenue less expenses.
  3. 4. Reduces assets and reduces owner's equity but not included in the calculation of profit.
  4. 5. Accounting assumption that allows the life of the business to be divided into arbitrary periods so that profit can be determined.
  5. 6. Under this assumption, revenues are recognised in the Period in which the expected inflow of economic benefits can be measured, or when the revenue is earned, whilst expenses are recognised when the consumption of goods or services can be measured, or when the expense is incurred.
  6. 8. Increases in assets or decreases in liabilities that result in an increase owner's equity, other than those relating to contributions from the owner.