Tag: Topic 16

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.

If accrued revenue was omitted from a company’s financial statements, the effect on the company’s statement of profit or loss and other comprehensive income and statement of financial position would be that?

Select ONE answer:

1. The revenue, retained earnings and current liabilities will be understated
2. The revenue, retained earnings, and current assets will be understated
3. Retained earnings and non-current assets will be understated
4. Current assets will be understated and retained earnings will be overstated

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 == > Accrued revenue is revenue that, as at the reporting date, has been earned but not yet received. If it was included it would boost the revenue figure, it would therefore boost the retained earnings figure and it would boost the current assets figure (as this is where accrued revenue is recorded).
3. Not correct
4. Not correct

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