**LC - Accounting THEORY

ChemHickey

Hello all, Just thought I'd make a thread for us who find it hard to learn the theory and as most years in accountancy, it is really neglected. So, here we go, I'll ask a question, you answer and pose another question!

Here we go... Everyone's favourite

Q: What is the role of an auditor :P

Sunny!!

ChemHickey wrote: »

Hello all, Just thought I'd make a thread for us who find it hard to learn the theory and as most years in accountancy, it is really neglected. So, here we go, I'll ask a question, you answer and pose another question!

Here we go... Everyone's favourite

Q: What is the role of an auditor :P

this is a good idea because its always the reason i dont get A1's


An auditor?

- shows an independent view of account
- ensures accounts show a true and fair value
- has no links to the business
- prepares reports
- ensures accounts are in compliance with companies acts


probarly a load of bull :L




What is the purpose of a cashflow statement?

ChemHickey

Sunny!! wrote: »

this is a good idea because its always the reason i dont get A1's


An auditor?

- shows an independent view of account
- ensures accounts show a true and fair value
- has no links to the business
- prepares reports
- ensures accounts are in compliance with companies acts


probarly a load of bull :L




What is the purpose of a cashflow statement?

Thanks! It's a pain to study so I thought i'd make it fun!


A cash flow statement

1) Assesses liquidity of a company
2) Shows profit does not always equal cash
3) Are used to predict future cash flow statements
4) Are used to comply with legal requirements and legislations
5) Shows the inflows and outflows of a company over a period of time

This theory below is supposedly due up this year

What is sensitivity analysis?

ganon

http://www.davidwilson.ie/web/Accounting_files/Accounting%20Theory.pdf

That's basically every question that's ever came up and their answers
(some general theory bits on p.2+3 are excessive though)

Sunny!!

ChemHickey wrote: »

Thanks! It's a pain to study so I thought i'd make it fun!


A cash flow statement

1) Assesses liquidity of a company
2) Shows profit does not always equal cash
3) Are used to predict future cash flow statements
4) Are used to comply with legal requirements and legislations
5) Shows the inflows and outflows of a company over a period of time

This theory below is supposedly due up this year

What is sensitivity analysis?

is that on the course?

imelle

ah accounting theory, my time to waffle and make crap up

ChemHickey

Sunny!! wrote: »

is that on the course?

Yep! :P I'll type it up later if you haven't found it yet! But if you find it, you'll remember it well!

ganon

Are breakeven charts on the course?
Our teacher's a business teacher and he did them with us once, but i don't know if that was just because he does them in business anyway

ChemHickey

ganon wrote: »

Are breakeven charts on the course?
Our teacher's a business teacher and he did them with us once, but i don't know if that was just because he does them in business anyway

I think theu're in the costing question. I don't do costing so Im not sure.. :L

Sunny!!

ChemHickey wrote: »

Yep! :P I'll type it up later if you haven't found it yet! But if you find it, you'll remember it well!

when the level of output is uncertain

Sunny!!

ChemHickey wrote: »

I think theu're in the costing question. I don't do costing so Im not sure.. :L

yes there in the costing question and imo very likely! My teacher done it aswell