Role Of Accountant

Question 1

What is the primary responsibility of an accountant?

Answer 1

The presentation and interpretation of financial statements

This includes preparing reports and advising on financial figures.

Question 2

What financial statements are typically prepared by accountants?

Answer 2

Income Statement and Statement of Financial Position

The Income Statement records income and expenses, while the Statement of Financial Position shows assets and liabilities.

Question 3

What does the Income Statement show?

Answer 3

All income and expenses for the business and the net profit

It was previously known as the statement of profit and loss.

Question 4

What does the Statement of Financial Position indicate?

Answer 4

The assets and liabilities of a business, giving the net worth

It provides insight into the financial health of the business.

Question 5

What key skills are important for an accountant?

Answer 5

Accuracy and attention to detail

These skills are essential for preparing financial statements and reports.

Question 6

What is one of the tax-related responsibilities of an accountant?

Answer 6

Completing relevant forms for HM Revenue and Customs (HMRC)

This includes calculating how much tax is due.

Question 7

True or False: An accountant’s role is the same in large and small organizations.

Answer 7

False

In larger organizations, accountants may have specialized roles, while in smaller organizations, one accountant may perform both bookkeeping and accounting duties.

Question 8

What type of accounts does an accountant working in practice primarily handle?

Answer 8

Financial accounts

These accounts are focused on the overall financial position of the business.

Question 9

What type of accounts does an accountant in industry primarily deal with?

Answer 9

Management accounts

These accounts are used for internal decision-making and management purposes.

Question 10

Fill in the blank: The role of an accountant may include some _______ work.

Answer 10

bookkeeping

This may involve recording transactions and controlling budgets.

Question 11

What is one purpose of the reports prepared by accountants for management?

Answer 11

To assist in decision-making regarding pricing or purchasing new machinery

These reports interpret financial performance for strategic decisions.