CAPE Accounting Unit 1 · 2016 · Paper 2 · Question 1(b)(ii)
State FOUR reasons why financial statements do not provide users with all the information they need.
The mark scheme is shown once you've answered.
Practise this questionOther parts of this question
- 1(a)(i)Using an appropriate example, explain the term 'Substance over form'.[2 marks]
- 1(a)(ii)Using an appropriate example, explain the term 'Relevance'.[2 marks]
- 1(a)(iii)Using an appropriate example, explain the term 'Reliability'.[2 marks]
- 1(b)(i)List the FIVE elements of a full set of financial statements as required by IFRS for SMEs.[5 marks]
- 1(b)(iii)Give FOUR reasons why the role of the external auditor is important to users of financial statements.[4 marks]
- 1(c)(i)State FOUR appropriate controls that may be used for Accounts receivable.[4 marks]
- 1(c)(ii)State FOUR appropriate controls that may be used for Cash at bank.[4 marks]
- 1(d)(i)Prepare the journal entry to record the issue of ordinary shares.[2 marks]
- 1(d)(ii)Prepare the journal entry to record the issue of preference shares.[2 marks]
- 1(d)(iii)Prepare the journal entry to record the distribution of preference dividends.[2 marks]
- 1(d)(iv)Prepare the journal entry to record the transfer of profits to general reserve.[2 marks]
More practice: the rest of this paper · more Financial Statement Analysis and Interpretation questions · all CAPE Accounting Unit 1 past papers