ACCA FBT/BT/FAB/AB/F1 Syllabus Section C Practice Questions and Answers

ACCA FBT/BT/FAB/AB/F1 Syllabus Section C Practice Questions and Answers Purpose of accounting information - ANSWERAccounting is a way of recording, analysing and summarising transactions of a business. Accounts are produced to aid management in planning, control and decision-making, and to comply with statutory regulations. Factors that influence the accounting system - ANSWER- Organisation *size* - *Type* of organisation - Organisation *structure* Users of Financial Information - ANSWER- Managers of the company - Shareholders of the company - Trade contacts (Eg. suppliers, customers) - Providers of finance to the company - HMRC ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 2/7 - Employees of the company - Financial analysts and advisors - Government and their agencies - The public Employee reports - ANSWERSpecially prepared financial information for issue to employees. Qualities of good information - ANSWER- Relevant - Comprehensible - Reliable - Complete - Objectivity - Timeliness - Comparable Financial accounting - ANSWERA method of reporting the results and financial position of a business. ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 3/7 Management or Cost accounting - ANSWERA management system which analyses data to provide information as a basis for managerial action. The concerns of a management accountant is to present accounting information in the form most helpful to managers. Financial manager - ANSWERResponsibly for raising finance and controlling financial resources. This includes financially related decisions on: - Shares - Dividends - Investments and new equipments