Week 1 Introduction to Module and Financial Accounting Flashcards
1
Q
What are the three types of business?
A
1) sole trader
2) partnerships
3) llc
2
Q
What are the main responsibilities of directors?
A
1) Duty of care to show reasonable competence
2) fiduciary position
3) must act honestly in best interests of the company
4) main aim: to create wealth for shareholders
5) resposnible for preperation of financial statements
3
Q
What is an audit?
A
An audit is the work performed by auditors (independent experts - so they can provide an informed professional independent opinion on whether financial statements portray a true and fair view, and that is all.
