Role of the Financial Accountant

Question 1

Stakeholders are:

Accepted Answer

A person or group interested in the activities of the org.

Question 2

Competitors (Potential takeover bidders) are interested in:

Accepted Answer

Dividend policies of the business, Real value of business assets

Question 3

Employees are interested in:

Accepted Answer

Employee profit sharing schemes

Question 4

Government (Inland Revenue) are interested in:

Accepted Answer

Accounts for tax purposes

Question 5

One duty of a Financial Accountant is to:

Accepted Answer

Follow the rules of the Financial Reporting Standards, Providing accounting info for internal & external use

Question 6

Financial Accounting is concerned with:

Accepted Answer

Complying with rules & legislation eg Companies Act, Book-Keeping & preparation of final accounts

Question 7

Potential Shareholders are interested in:

Accepted Answer

Dividends paid, Dividends on investments compared with similar businesses, Profits/sales trends

Question 8

Trade Payables, for example suppliers are interested in:

Accepted Answer

Claims on assets if the business goes bankrupt, The ability to repay debts

Question 9

Debenture holders are interested in:

Accepted Answer

Company's ability to repay the loan and pay interest

Question 10

A limitation of financial accounting is to:

Accepted Answer

No additional info PESTEC & internal factors eg staff views, Gives figures in monetary terms

Question 11

Owners & Management are interested in:

Accepted Answer

Comparing performance with previous years and competitors, How much does the business own and owe

Question 12

Banks might be interested in:

Accepted Answer

Business profit trends & liquidity position

Question 13

One duty of a Financial Accountant is to:

Accepted Answer

Record keeping of assets liabilities, income, & expenses

Question 14

Objectives of a Financial Accountant are to:

Accepted Answer

Present historical financial records of business affairs, Show stewardship of business & accountability to its owners

Question 15

A limitation of financial accounting is to:

Accepted Answer

It is based on historical events - has occurred in the past

Question 16

Existing shareholders are interested in:

Accepted Answer

High dividends, Profitability

Question 17

One duty of a Financial Accountant is to:

Accepted Answer

Maintain correct & comprehensive records, Comply with taxation regulations

Question 18

A limitation of financial accounting is to:

Accepted Answer

It deals with final figures, not breaking down info

Questions 18