Financial accounting is:

• Records transactions between the business and its customers, suppliers, employees and owners

• Records are not mandatory

• Prepared for internal use only

• Concerned with allocation and control of resources

Example of legal policy:

• Expenses policy

• Purchase ledger payment procedures

• Authorised signatories

• Data protection act

Example of internal policy:

• Corporation tax

• Data protection act

• Overtime payment procedures

• Health and safety regulations

Solvency is:

• Enough information to allow decisions to be made but not so much to confuse the issue

• Information ic correct and reliable

• Refers to the financial soundness of a business that allows it to discharge its monetary obligations.

• Awareness of how much is owed to the company.

Comparison to corresponding period

• Compare current costs and income to the same costs and income from previous periods in order to determine any significant changes.

• Comparing the year to date costs and income to the same cumulative period in the previous year.

• Compare current costs and income to the same costs and income from similar company in order to determine any significant changes.

• Comparing the year to date costs and income to the same type of company.

Which one of the following statements about an organisation is NOT true?

• An organisation chart provides a summary of the structure of a business.

• An organisation chart can indicate functional authority but not line authority within a business.

• An organisation chart can improve employees understanding of their role in a business.

• An organisation chart can improve internal communications within a business.

Today is Friday.

Kamila has three tasks to complete, each of which will take two hours. Her supervisor is expecting her to have completed them all by 10 am on Monday.

Kamila was unable to perform any of the tasks on Friday morning because the computer was not working. It is now 2 pm on Friday. Kamila normally goes home at 5pm

What should Kamila do in these circumstances?

• Complete one of the tasks and start one of the others. She should be able to complete all of them by noon on Monday.

• Complete the most urgent task and take home the other two tasks. She is bound to be able to find time to finish them over the weekend.

• Contact her supervisor immediately and explain the problem. She should suggest that she finishes what she considers to be the most urgent task first before starting one of the others.

• Start all of the tasks and do parts of each of them. This way she has at least done something towards each of them before she goes home.

The employment Rights Act 1996:

• Limit the hours of work to an average of 48 a week.

• Deals with protecting people from discrimination.

• Imposes minimum levels of pay.

• Gives employees certain rights, such as a right not to be unfairly dismissed etc.

Noise/ Interference is:

• a full or partial loss of communication. It can arise at the collecting and measuring point, or there can be errors or omissions in transmission and misinterpretation or misunderstanding, or blatant disregard of communication.

• Process of passing information and understanding from one person to another.

Verbal noise is:

• Damage to organisation's communications centre, such as its telephone etc.

• In response to a request for a simple information, a voluminous report may be prepared obscuring the vital information.

• Misunderstanding of words