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WorksheetsHigher Accounting - The Role of the Financial Accountant
Total questions: 10
Worksheet time: 5mins
Which of the following is NOT an objective of financial accounting?
To ensure that the preparation of financial statements complies with the law (Companies Act) and accounting standards
To create a historical record of the financial affairs of a business
To produce business plans, forecasts and budgeting information
To provide information to the management of a business organisation for decision making purposes
Which THREE of the following are duties of a financial accountant?
Perform ratio analysis to compare current performance of the business with past performance or performance of similar businesses
Check financial records to maintain accuracy and reduce fraud
To liaise with management to prepare cash budgets
Prepare accounts for auditing and publication as and when required
Financial accounting is historical and deals with operations which have already occured.
True
False
Financial accountants are concerned with collecting and analysing costs and revenues of current and future activities in order to aid decision-making
True
False
Which of the following documents would a financial accountant NOT prepare?
Income Statement
Cash Budget
Statement of Financial Position
Which of the following is NOT a problem associated with financial accounting information?
It deals with historic records - things which have already occured and you cannot change what has already happened
The information provided is concerned with the whole firm - it does not provide detailed information on individual business areas
Ensures the business complies with law (Companies Act) and standards (laid out by professional accounting bodies)
When preparing financial statements, the accounts must reflect a "true and fair" view of the business activities.
Financial information is only useful if it is.... (select three options)
Relevant
Unreliable
Understandable
Comparable
Which of the following accounting concepts matches this definition:
Companies should use the same accounting methods to record similar transactions over time
Going Concern
Matching Concept
Consistency
Prudence
Which of the following accounting concepts matches this definition:
Accountants should not recognise an asset at a value higher than expected or a liability below what is expected in future
Going Concern
Matching Concept
Consistency
Prudence
Which of the following accounting concepts matches this definition:
Expenses incurred by an organisation must be charged to the Income Statement in the year "matching" the year in which those expenses occured
Going Concern
Matching Concept
Consistency
Prudence
