Key Words

Question 1

Influenced bY personal beliefs or feelings

Answer 1

Objectivity

Question 2

Not allow bias, conflict of interest, undue influence (person in power trying to influence)

Answer 2

Objectivity

Question 3

Always act fairly and sensitively

Answer 3

Objectivity

Question 4

Should not allow influence of others override their professional or business judgement

Answer 4

Objectivity

Question 5

Personal opinions

Answer 5

Objectivity

Question 6

Ensure the client receives competent professional service

Answer 6

Professional competence and due care

Question 7

Maintain professional knowledge and skill at a level required

Answer 7

Professional competence and due care

Question 8

Member should act diligently (show care) and in accordance with applicable (relevant) technical and professional standards when providing professional services

Answer 8

Professional competence and due care

Question 9

Only take on new assignments in which they have the skills to

Answer 9

Professional competence and due care

Question 10

Making sure the work is of high standard, taking the time to make sure it is of quality

Answer 10

Professional competence and due care

Question 11

Comply with relevant laws

Answer 11

Professional behaviour

Question 12

Avoid any acttion that brings the profession into disrepute

Answer 12

Professional behaviour

Question 13

Giving advise where the accountant failed to comply with relevant laws and reg

Answer 13

Professional behaviour

Question 14

Associated with misleading information

Answer 14

Intergrity

Question 15

Misleading information to users

Answer 15

Intergrity

Question 16

Capital expenditure

Answer 16

Expenditure on non current assets or on the improvement of non current assets

Recorded as assets

Question 17

Initial cost is..

Answer 17

Include the cost of the asset and the cost of getting the asset to its current location and into working condition

(Devlivery, legal and professional fees, installation costs, test runs)

Question 18

IAS 16 property plant and equipment states that subsequent (following after) expenditure on assets should be capitalised on 3 circumstances

Answer 18

1- where it enhances the value of the asset
2- where a major component of the asset is replaced and restored
3- where it is a major inspection or overhaul of an asset

Question 19

The prudence concept

Answer 19

Requires and organisation to recognise future losses as soon as it becomes aware of there existence

Question 20

Doubtful debt. Specific and general

Answer 20

Specific - particular revivable

General- overall receivables

Question 21

IAS 2 calculation of inventory

Answer 21

Inventory should be calculated at the lower cost and net realisable value

Net realisable value- the actual or estimated selling price less all further costs to complete the item

Question 22

Types of organisations that need to prepare accounts (5)

Answer 22

Sole traders
Partnership
Limited company’s
LLPS
Charities

Question 23

Limited company’s must prepare their accounts in accordance with the …………………….. and relevant ……………..

Answer 23

The companies act 2006

Accounting standards

Question 24

Charities must prepare a statement of Financial positition at the end of each reporting period

Answer 24

,

Question 25

Share holders reason for using the final accounts and management

Answer 25

Shareholder - assess ability of. A business to pay dividends and manage resources Management - compare information of the business they work for to others

Question 26

The legal and regulatory framework

Answer 26

Accounting standards provide rules and guidance for specific trading standards

Question 27

Going concern

Answer 27

Assumes entity will continue in operation for the foreseeable future

Question 28

Net assets

Answer 28

Opening capital + profit (loss) + capital - drawings

Question 29

Increase in net assets

Answer 29

Capital introduced + profit (loss) - drawings

Question 30

Responsible for issuing international financial reporting standards

Answer 30

IASB the international accounting standards board

Question 31

IAS 1 sets out ...

Answer 31

Overall requirements for financial statements for organisations adopting the IFRS standards including how they should be structured and the minimum requirements for their content

Question 32

Limited company financial statements need to follo statutory formats with prescribed headings and terminology

Answer 32

.

Question 33

Taxation is charged to the

Answer 33

p+l

Question 34

Management accounting provides information for (internal reporting)

Answer 34

Planning, controlling and decision making

Question 35

Management information can be produced in ...... format that is useful to the business and tended to be produced .......... for instance every ........

Answer 35

Any format Frequently Every month

Question 36

Responsibility centres

Answer 36

Cost centre, profit center and investment center

Question 37

Cost center

Answer 37

Manager controls costs

Question 38

Profit center

Answer 38

Manager controls costs and revenue

Question 39

Investment center

Answer 39

Manager controls costs , revenue and investment

Question 40

Reorder level =

Answer 40

Maximum usage X minimum lead time + buffer

Question 41

Pay back

Answer 41

Time to recoup initial investment