Myanmar DA Part II Module I flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Accounting equation

Assets equal liabilities plus equity. Every transaction affects at least two elements and keeps this equation balanced, forming the basis of double-entry bookkeeping.

Accrual basis

Revenue is recorded when earned and expenses when incurred, regardless of cash timing. This matches income and expenses to the period they relate to.

Lower of cost and NRV

Inventory is measured at the lower of historical cost and net realisable value, where NRV is estimated selling price less costs to complete and sell.

Bank reconciliation purpose

It reconciles the cash book balance with the bank statement balance by adjusting for deposits in transit, outstanding cheques, bank charges, interest and errors, proving cash control.

Contribution margin

Sales revenue minus variable costs. It contributes first to covering fixed costs; any excess becomes profit, and it is used in break-even and target-profit calculations.

Break-even point

The sales volume or revenue at which total contribution equals fixed costs and profit is zero. In units it equals fixed costs divided by contribution per unit.

High-low method

A cost estimation technique using the highest and lowest activity levels. Variable cost per unit equals the change in cost divided by the change in activity; fixed cost is the residual.

Relevant cost

A future, incremental cash cost that differs between alternatives. Sunk costs, committed costs and allocated common costs that do not change are irrelevant to the decision.

Audit risk model

Audit risk equals inherent risk times control risk times detection risk. Detection risk is controlled by the auditor through the nature, timing and extent of audit procedures.

Sufficient appropriate evidence

Evidence must be sufficient in quantity and appropriate in relevance and reliability. External, original and independently obtained evidence is generally more reliable than internal or copied evidence.

Going concern assumption

The entity is assumed to continue operating for the foreseeable future. Auditors evaluate management's assessment covering at least twelve months from the financial statement date.

Qualified audit opinion

Issued when the auditor concludes that misstatements are material but not pervasive, or sufficient appropriate evidence cannot be obtained, while the financial statements remain useful overall.

Myanmar tax year

Myanmar's income tax year runs from 1 April to 31 March. Tax returns and payments are generally due within the period prescribed by the Internal Revenue Department.

Separate legal personality

A registered company is a legal person distinct from its shareholders and directors. It can own property, contract, sue and be sued, and shareholders' liability is generally limited.

Tax avoidance versus evasion

Avoidance uses lawful arrangements to reduce tax; evasion involves illegal concealment, false reporting or non-disclosure. Penalties apply to evasion, while legitimate avoidance is generally permitted.

Consideration in contract

Something of value exchanged between parties, such as money, goods, services or a promise. It must be lawful and is required for a valid simple contract under Myanmar contract law.

Simple interest formula

Interest equals principal times annual rate times time in years: I = P × r × t. The amount repayable is principal plus interest, A = P(1 + rt).

Compound amount formula

Future value equals present value times one plus the periodic interest rate raised to the number of periods: A = P(1 + i)^n.

Percentage change

Percentage change equals the new value minus the old value, divided by the old value, then multiplied by one hundred. It measures relative increase or decrease.

Markup versus margin

Markup is profit divided by cost, while margin is profit divided by selling price. A 25% markup on cost equals a 20% margin on selling price.

Standard deviation

A measure of dispersion around the mean, equal to the square root of variance. A larger standard deviation indicates greater variability in the data.

Coefficient of variation

The standard deviation divided by the mean, often expressed as a percentage. It compares relative variability across data sets with different units or means.

Normal distribution rule

About 68% of values lie within one standard deviation of the mean, 95% within two, and 99.7% within three in a normal distribution.

Correlation coefficient

A number between minus one and plus one measuring the strength and direction of linear association. It does not by itself prove that one variable causes another.

Price elasticity of demand

The percentage change in quantity demanded divided by the percentage change in price. Demand is elastic when the absolute value exceeds one and inelastic when below one.

Gross domestic product

The market value of final goods and services produced within a country in a period. It equals consumption plus investment plus government spending plus net exports.

Opportunity cost

The value of the next best alternative forgone when a choice is made. It is central to scarcity, trade-offs and rational decision making in economics.

Monetary policy

Central bank actions affecting money supply, interest rates and credit conditions to influence inflation, employment and economic growth. Tools include policy rates, reserve requirements and open market operations.

Primary key

A database field or combination of fields that uniquely identifies each record in a table. It cannot contain duplicate or null values.

Phishing

A fraudulent attempt to obtain sensitive information by impersonating a trusted party through email, messages or fake websites. Users should verify sender addresses and avoid suspicious links.

Cloud service models

IaaS provides infrastructure, PaaS provides development platforms, and SaaS provides ready-to-use applications. Responsibility for management shifts from the customer to the provider across these models.

Active voice

A sentence construction where the subject performs the action, as in 'The manager approved the budget.' It is usually clearer and more direct than passive voice in business writing.