Book keeping Exam Study Guide with Complete solutions
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Course
Book keeping
Institution
Book Keeping
Book keeping Exam Study Guide with
Complete solutions
Reasons for accounting - Answer️️ --shows financial position and performance (profit)
-starting point to calculate tax
-used to budget and forcecast costs and revenues
-used to control business activities
-make decisions - which produc...
Book keeping Exam Study Guide with
Complete solutions
Reasons for accounting - Answer✔️✔️--shows financial position and performance (profit)
-starting point to calculate tax
-used to budget and forcecast costs and revenues
-used to control business activities
-make decisions - which products to produce
main driver for accounting - Answer✔️✔️-legislation
by law firms are required to produce accounts for - Answer✔️✔️-the tax authorities
listed companies must produce - Answer✔️✔️-audited accounts for stock exchange
5 principles - Answer✔️✔️--consistency
-going concern
-prudence
-matching concept
-separate valuation of assets & liabilities
consistency - Answer✔️✔️-use of the same accounting principles and methods from year
to year within a company
-without this we cannot compare the accounts and see whether it has improved
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