6 Financial Accounting and Reporting DISTINCTIONS

Question 1

Trading vs Non Trading

Answer 1

TAPE

1. Types
2. Activities
3. Purpose
4. Examples

Question 2

Receipts and Payments vs Cash Book (10)

Answer 2

Overall Idea:
1. Purpose
2. Final Account? (Receipts)
4. Necessity (Essesntial)
5 Preparing Entity
6. Basis of Preparing
7. Nature of Account (Periodic or Running)

Details about the account:

1. Double Entry (cash book)
2. Chronological order (cash book)
3. Column Form (cash book)
4. Classification

Question 3

Receipts and Payments Account vs Income and Expenditure Account

Answer 3

Overall:

1. Meaning (Nature)
2. Aim (Object)
3. Type of Account
4. Nature of Items (Capital or Revenue)
5. Non Cash Items
6. Period of items
7. Sides

Details:

1. Opening Balance
2. Closing Balance
3. Balance Sheet
4. Accrued/Outstanding Item (only cash items)

Question 4

Profit and Loss vs Income and Expenditure

Answer 4

1. Aim
2. Nature of Organization
3. Contents
4. Basis
5. Balance

Basis
BANC

Question 5

Receipts and Incomes

Answer 5

1. Meaning
2. Nature
3. Period
4. Account

Question 6

Profit and loss a/c and balance sheet

Answer 6

1. Purpose
2. contents
3. Time period
4. Sequence

ST PC