Published financial statements

Question 1

A complete set of financial statements comprises:

Answer 1

statement of financial position –assets, liabilities and equity

statement of profit or loss (and other comprehensive income) – income and expenditure (and unrealised gains and losses)

statement of changes in equity–movement in all components of equity

statement of cash flows–cash movements during the period

accounting policies and explanatory notes – explains how financial statements have been produced.

Question 2

Preference shares are

Answer 2

treated as a liability as they’re redeemable -unless irredeemable ofc

Question 3

All other shares go to

Answer 3

Equity

Question 4

Differences between profit-orientated and not-for-profit entities
Financial aims

Answer 4

Shareholder wealth v value for money (3 E’s: Economy, Efficiency, Effectiveness)