7 marksAccounting Standards and Conceptual Framework

CAPE Accounting Unit 1 · 2006 · Paper 2 · Question 1(a)(ii)

Under accruals-basis accounting, accountants make five categories of adjusting journal entries at year-end: Deferred expenses; Deferred revenues; Accrued expenses; Accrued revenues; Estimated expenses.

Explain how the adjusting journal entries listed are related to the accruals and matching concepts.

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1(a)(i)Write short notes on the process involved in recording adjusting journal entries for any THREE of the five categories of items listed.[9 marks]
1(b)List and briefly describe FIVE internal control practices relating to cash, which would be carried out even in a small business having little opportunity for…[10 marks]
1(c)(i)Briefly describe THREE ways in which accounting standards benefit those who prepare financial statements for publication.[4.5 marks]
1(c)(ii)Briefly describe THREE ways in which accounting standards benefit the users of published financial statements.[4.5 marks]

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