Finance and budgeting

Question 1

What is the purpose of financial accounting?

Answer 1

record summarise and report on financial performance over a period of time

Question 2

What are the 3 main financial statements and who are they produced in accordance with?

Answer 2

Income statement
Statement of financial position
cashflow statement
Produced in accordance with IAS

Question 3

What is the purpose of management accounting?

Answer 3

prepare reports about business operations that help mangers make short-term and long-term decisions -

Question 4

What kind of information may a management accountant provide for a business?

Answer 4

Budget and Forecasts
Variance Analyst
Analysis of the most profitable products

Question 5

What does the finance department/management accounting do?

Answer 5

Preparation of quarterly VAT returns
End of year financial reports
Submission of financial data to companies house

Question 6

What are the 3 main finance departments?

Answer 6

Purchase ledger
Sales ledger
Credit control