5TOBM-MDFL5-Final accounts

Who uses the final accounts to measure the business’ performance, make decisions, control the operation of each department, set targets or budgets?

• Workforce

• Banks

• Creditors such as suppliers

• Customers

• Managers

Who uses the final accounts to determine whether the company is secure to pay salaries and compare the average salary with the directors’ salaries?

• Workforce

• Banks

• Creditors such as suppliers

• Customers

• Managers

Who uses the final accounts to decide whether to lend money to the business or to allow an increase in overdraft facilities?

• Workforce

• Banks

• Creditors such as suppliers

• Customers

• Managers

Who uses the final accounts to assess whether the business have enough money to pay off its debts and decide whether to press for early repayment?

• Workforce

• Banks

• Creditors such as suppliers

• Customers

• Managers

Who uses the final accounts to determine whether they will find future supplies or service facilities?

• Workforce

• Banks

• Creditors such as suppliers

• Customers

• Managers

Who uses the final accounts to calculate how much tax is due from the business and confirm whether it is staying within the law?

• Workforce

• Government

• Investors

• Local community

• Managers

Who uses the final accounts to assess the business value, establish whether the business is becoming more or less profitable and compare financial data with other business?

• Workforce

• Government

• Investors

• Local community

• Managers

Who uses the final accounts to determine whether the business will expand or close because that will affect the local economy?

• Workforce

• Government

• Investors

• Local community

• Managers

It is NOT a LIMITATION OF ACCOUNTING INFORMATION TO STAKEHOLDERS

• One set of accounts is of limited use

• Accounts measure items which cannot be expressed in monetary terms

• The accounts of one business do not allow for comparisons

• Business accounts will only publish the minimum information required by law

• Window dressing

It is NOT a principle of accounting practice

• Integrity

• Objectivity

• Professional competence and due care

• Confidentiality

• Personal behavior