FA – May 2013 – L1 – SB – Q2 – Roles of Accountants in Business and the Economy

This question discusses the various roles played by accountants in an organization.

Question

a. Most Organizations require the services of an accountant. State FIVE roles of an accountant in an Organization. (5 Marks)

b. Yaro Chukwu Plc is a manufacturing company based in Ile-Ife. It commenced business in 2008 with five vehicles costing N650,000 each. The company depreciates its assets at 20% on cost, using straight line method by providing full depreciation in the year of purchase and none in the year of disposal. Another vehicle costing N900,000 was purchased in 2009 to replace the one
sold in 2008 for N450,000, while the company still maintains its depreciation policy.
You are required to prepare:
i. Motor vehicle account up to 31 December 2012 (4 Marks)
ii. Disposal of Assets Account (2 Marks)
iii. Provision for depreciation account up to 31 December 2012 (4 Marks)

Answer

a. Five roles of an accountant in an organization:

Financial Reporting: Preparing and analyzing financial statements to ensure compliance with statutory requirements and providing stakeholders with an accurate picture of the financial health of the organization.
Tax Compliance and Planning: Ensuring the organization complies with tax laws and planning strategies to minimize tax liabilities.
Budgeting and Forecasting: Assisting in the preparation of budgets and forecasts that help guide the organization’s financial planning and resource allocation.
Auditing: Conducting internal audits to ensure financial records are accurate and that internal controls are functioning properly.
Management Accounting: Providing detailed financial analysis to support decision-making, including cost control, product pricing, and performance measurement.