- 20 Marks
CIB GH – INTRODUCTION TO ACCOUNTING – APRIL 2024 – L1 – Q7 – Importance of Management Accounts and Adjustments for Accruals/Prepayments
Explain five reasons for importance of management accounts; two reasons for accruals and prepayments adjustments.
Question
a) The owner of Asprino Ventures, as part of the advice to a newly appointed Accountant said that she should focus on the preparation of the Year-End Financial Statements and not the preparation of Management Accounts. As a Chartered Banker you know that it is important for companies to prepare Management Accounts. You are required to: Explain to the owner of Asprino Ventures with FIVE (5) reasons why Management Accounts are important. (15 marks)
b) Explain TWO (2) reasons why a business entity will make Adjustments for Accruals and Prepayments in preparing its Final Accounts. (5 marks)
[Total: 20 marks]
Find Related Questions by Tags, levels, etc.
- Tags: Accruals, Adjustments, importance, Management Accounts, Prepayments
- Level: Level 1
- Topic: Adjusting accounts
- Series: APR 2024
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