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Exam (elaborations)

Book keeping Exam Study Guide with Complete solutions

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  • Course
  • Book keeping
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  • 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...

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  • September 13, 2024
  • 11
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Book keeping
  • Book keeping
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SophiaBennett
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, ©SOPHIABENNETT EXAM SOLUTIONS Saturday, September 7, 2024 6:58 PM



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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