Tag: Finance Function

Ken is an accountant with Alex plc.

Ken was recently asked to join a project team looking into Alex plc’s compliance with both FRC and IASB standards.

It appears, therefore, that Ken has been recruited into this project team in order to exploit his expertise in?

Select ONE answer:

1. Financial reporting
2. Performance measurement
3. Capital budgeting
4. Strategic management accounting

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 == > Financial reporting involves preparing financial information including the financial statements, tax and regulatory reporting.
2. Not correct
3. Not correct
4. Not correct

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

Which ONE of the following are characteristics of management accounting information rather than financial reporting information?

Select ONE answer:

1. It is governed by statute
2. It is primarily used by shareholders
3. It is likely to include budgetary information on the future of the business
4. It is likely to include a statement of cash flows

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 3

1. Not correct
2. Not correct
3. Correct == > Management accounts are internal accounts used for managing the business. Financial reporting is regulated by accounting standards and statute and report on historical results; is used by shareholders; and will probably have a cash flow forecast – a statement of cash flows is an historical summary of cash flows and forms part of the financial statements
4. Not correct

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

Which ONE of the following are characteristics of management accounting information rather than financial reporting information?

Select ONE answer:

1. It is governed by statute
2. It is likely to include a cash flow forward forecast
3. It is primarily used by shareholders
4. It is likely to include a statement of cash flows

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 == > Management accounts are internal accounts used for managing the business. Financial reporting is regulated by accounting standards and statute and report on historical results; is used by shareholders; and will probably have a cash flow forecast – a statement of cash flows is an historical summary of cash flows and forms part of the financial statements
3. Not correct
4. Not correct

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

Which ONE of the following are characteristics of management accounting information rather than financial reporting information?

Select ONE answer:

1. It is both forward looking and historical
2. It is governed by statute
3. It is primarily used by shareholders
4. It is likely to include a statement of cash flows

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 == > Management accounts are internal accounts used for managing the business. Financial reporting is regulated by accounting standards and statute and report on historical results; is used by shareholders; and will probably have a cash flow forecast – a statement of cash flows is an historical summary of cash flows and forms part of the financial statements
2. Not correct
3. Not correct
4. Not correct

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

Lucy is employed in the finance function of Alex plc as a cash accountant.

Her duties involve ensuring that the company always has sufficient funds available to meet both its short-term and long-term financial
Requirements and obligations.

It is clear, therefore, that Lucy is employed by Alex plc in its?

Select ONE answer:

1. Financial reporting section
2. Management accounting section
3. Treasury management section
4. Transaction processing section

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 3

1. Not correct
2. Not correct
3. Correct == > Treasury management is concerned with managing the funds of a business, namely cash and other working capital items plus long-term investments, short-term and long-term debt and equity finance.
4. Not correct

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