1 An Introduction To The Role Of The Accountant In Business Flashcards
What is the primary responsibility of an accountant?
Providing reliable and relevant information for various stakeholders.
What process checks if financial statements provide a true and fair view?
Auditing.
List three responsibilities of an accountant.
- Preparing financial statements
- Analysing financial information
- Producing budgets
What does management accounting focus on?
Planning, control, and decision making.
True or False: Financial accounting is prepared for internal stakeholders.
False.
What is the purpose of financial accounting?
Using historical information to prepare financial statements.
Name two examples of financial statements.
- Income statement
- Statement of cash flows
Who are the primary external stakeholders for financial statements?
- Shareholders
- Government (HMRC)
- Banks
- Potential investors
What is the main duty of bookkeepers?
Recording day-to-day business transactions.
Fill in the blank: Bookkeepers maintain accounting records and check the _______ of those records.
Accuracy.
What distinguishes bookkeepers from ledger clerks?
Bookkeepers handle all financial transactions, whereas ledger clerks deal with one part of the accounting system.
What financial statements do accountants prepare?
- Income statement
- Statement of financial position
What must accountants ensure regarding financial statements?
That accounting concepts have been applied.
Who independently checks the financial statements prepared by accountants?
Auditors.
What do auditors report to shareholders?
Whether the financial statements provide a ‘true and fair’ view.
