Order accounting equation assignment Which of the following transactions would cause £50,000 increase in both total assets and total liabilities of a business: (a) Acquisition of a computer for office use for £50,000 on delayed payment terms (b) Payment of £50,000 in part settlement of a loan obtained by the business (c) Payment of staff salary of £50,000 (d) Collection in full of a debt […]

Inventories and profit margin assignment Which of the following expenses would you regard as part of the cost of goods sold? (a) Advertising the goods for sale (b) Insurance and freight on importing goods for sale (c) Packing the goods for delivery to customers (d) Insurance of goods in the warehouse against fire and theft 6.3 If carriage inwards amounting to £57,800 is included as […]

Discuss features of a sole trader assignment ● Define, and explain the definition of, accounting. ● Explain what is meant by a conceptual framework. ● Explain the distinguishing features of a sole trader, a partnership and a limited company. ● List the main users of financial information and their particular needs. ● Discuss the usefulness of financial statements to the main users. Additionally, for those […]

Order basic form of the accounting equation Write out the basic form of the accounting equation. (Section 2.2) A2.2 Define an asset and explain each part of the definition. (Section 2.3) A2.3 Give five examples of items which are assets. (Section 2.4) A2.4 Use the definition to explain why each of the items in your answer to A2.3 is an asset. (Section 2.4) A2.5 Explain […]

Discuss the role of prudence in accounting List and explain the qualitative characteristics desirable in financial statements. ● Explain the approach to measurement used in financial statements. ● Explain why there is more than one view on the role of prudence in accounting. ● Understand and explain how and why financial reporting is regulated or influenced by external authorities. ● Be aware of the process […]

Analyzing on-current asset and depreciation Define a non-current (fixed) asset and apply the definition. ● Explain the recognition criteria that are applied to tangible non-current (fixed) assets, intangible non-current (fixed) assets and non-current (fixed) asset investments. ● Explain users’ needs for information about non-current (fixed) assets. ● Describe and explain the non-current (fixed) asset information provided in annual reports of companies. ● Evaluate the usefulness […]

Discuss the criteria for recognition of liabilities Define a liability and explain the distinguishing feature of current liabilities. ● Explain the criteria for recognition of liabilities. ● Explain how the information presented in a company’s statement of financial position (balance sheet) and notes, in relation to liabilities, meets the needs of users. ● Explain the features of current liabilities and the approach to measurement and […]

Order accounting treatment of dividends Define ownership interest. ● Explain and demonstrate how the ownership interest is presented in company accounts. ● Understand the nature and purpose of the statement of changes in equity in the IASB system. ● Explain the needs of users for information about the ownership interest in a company. ● Read and interpret the information reported by companies in their annual […]

The analysis of corporate performance help Explain the importance of the operating and financial review as a component of the annual report of a company. ● Describe and explain other useful information in the annual report that is relevant to analysis of corporate performance. ● Relate the interpretation of ratios to the information in a statement of cash flows. ● Explain how segmental information is […]

The issues of accountability and financial reporting outline the uses and purpose of accounting and the practice of accountancy ■ explain the development of the conceptual frameworks of accounting ■ outline the contents of the UK Statement of Principles (SOP) ■ explain the main UK accounting concepts and accounting and fi nancial reporting standards ■ appreciate the meaning of true and fair view ■ consider […]