By Henry Lunt

ISBN-10: 1856177858

ISBN-13: 9781856177856

CIMA reliable studying structures are the single coursebooks advised through CIMA. Written via a group of specialists that come with earlier and current CIMA examiners and markers, they comprise every little thing you must recognize. each one ebook maps to the syllabus bankruptcy by means of bankruptcy that can assist you research successfully and strengthen studying with good points together with: - accomplished insurance of the entire syllabus - step-by-step insurance at once associated with CIMA's studying results - brand new examples and case reviews - perform inquiries to try out wisdom and figuring out - built-in readings to extend realizing of key theories - color used all through to spotlight key studying issues * The professional studying platforms are the one examine fabrics counseled through CIMA * Key sections written by means of former examiners for the main exact, up to date assistance in the direction of examination luck * whole built-in package deal incorporating syllabus tips, complete textual content, prompt articles, revision courses and vast query perform

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6 Which one of the following sentences does not explain the distinction between financial statements and management accounts? (A) Financial statements are primarily for external users and management accounts are primarily for internal users. (B) Financial statements are normally produced annually, and management accounts are normally produced monthly. (C) Financial statements are more accurate than management accounts. (D) Financial statements are audited by an external auditor and management accounts do not normally have an external audit.

The amount includes initial and subsequent amounts introduced by the owner(s), plus any profits earned that have been retained in the organisation. Revenue. Amounts earned by the activities of the organisation, which eventually result in receiving money. Includes sales revenue, interest received and so on. Revenue increases profit. Expense. Costs used up in the activities of the organisation. Includes heat, light, local business tax, inventories consumed, wages and so on. Expenses reduce profit. 3 On 1 June 20X1, J Brown started business as a jobbing gardener with a capital of $2,000 in cash.

1 Capital transactions The word ‘capital’ means different things in different contexts. You have already seen how the word is used to identify the investment by an owner in his business. Capital transactions are those that affect the organisation in the long term, as well as in the current period. Capital expenditure is expenditure on non-current assets, and capital receipts would result from the disposal of those assets. Other transactions that are regarded as capital transactions are the obtaining of, and repayment of, non-current finance.

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CIMA Official Learning System Fundamentals of Financial Accounting: CIMA Certificate in Business Accounting by Henry Lunt


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