Tag: Accounting Concepts

Tick & Co is a major international firm of chartered accountants.

Bill has just joined the firm after working for a very small sole practitioner who had to retire due to ill health.

His friend Joan, who has worked for Tick & Co for ten years, helped him get the job.

However, she has just found out that Bill exaggerated his degree results and his previous work experience on his application form.

In which of the following areas has Bill breached the ICAEW Code of Ethics?

Select ONE answer:

1. Integrity
2. Objectivity
3. Professional competence
4. Confidentiality

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Integrity – Bill has clearly breached the code by submitting a false application. He has acted neither with honesty nor integrity. Bill in fact, has cheated and possibly gained an advantage over other candidates who could have been better qualified.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

There are activities which legislation requires to be carried out by members of certain bodies that are ‘recognised professional regulators’.

Which ONE of the following activities are included in such requirements?

Select ONE answer:

1. Management consultancy
2. Investment business
3. Taxation
4. Payroll

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > Some areas of public practice are ‘reserved’ and so there are specific additional requirements for professional accountants engaged in them. The three areas are statutory audit, investment business and insolvency work.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

There are activities which legislation requires to be carried out by members of certain bodies that are ‘recognised professional regulators’.

Which ONE of the following activities are included in such requirements?

Select ONE answer:

1. Insolvency
2. Management consultancy
3. Taxation
4. Payroll

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Some areas of public practice are ‘reserved’ and so there are specific additional requirements for professional accountants engaged in them. The three areas are statutory audit, investment business and insolvency work.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which accounting principle states that a company should use the same accounting methods and procedures from one accounting period to the next?

Select ONE answer:

1. The materiality principle
2. The consistency principle
3. The prudence principle
4. The faithful representation principle

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > The consistency principle states a company should use the same accounting methods and procedures from period to period.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.