Mocks

Question 1

Responsibilities of the accountants

Answer 1

• Prepare financial statements on behalf of a business
• Ensure that financial statements and tax returns are submitted by deadlines
• Produce budgets for business
• Analyse financial information to provide advice about where the financial performance can be increased
• Introduce accounting procedures for new business

Question 2

Management Accounting

Answer 2

Focuses on planning, control and decision making
Prepared for internal use; to provide information for internal rather than external stakeholders (eg owners)

Question 3

Management accounting focuses on planning, control & decision making
What do those 3 subjects mean?

Answer 3

Planning: Including preparation of budgets
Control: standard costing & calculating variances between budgeted costs
Decision making: Short term (marginal costing) or long term (capital investment appraisal)

Question 4

Financial Accounting (focus/aims)

Answer 4

Focuses on using historical information to prepare financial statements
Examples of financial statements r income statements, statements of financial position & annual report

Question 5

The role of the account (bookkeepers)

Answer 5

Bookkeepers (aka ledger clerks) are responsible for day-to-day transactions:
- maintaining accounting records
- entering transactions in books of prime entry & ledgers
- checking accuracy of records

Question 6

The role of the accountant

Answer 6

Accountants are responsible for the actual preparation of financial statements (income statements/statement of financial position)

They make sure that:
1. Accounting concepts have been applied
2. Financial statements show a true and fair view of the business