Synoptic Exam X2

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What is the difference between financial and management accounting?
Financial accounting is required to meet the needs of external stakeholders and regulatory requirements whereas, management accounting is to meet the needs of the internal decision makers. Management information is provided to assist with planning, contro
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Tasks associated with management accounting?
Costings/ Budgets/ Analysis of Financial Data / Market Analysis / Forecasting / Assessment of efficiency
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Tasks associated with financial accounting?
Preperation of statutory accounts / Year-end adjustments / Cash flow statement / Inventory Valuation / Financial Costing / Trade Receivables and Payables.
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What is money laundering?
Money laundering is the process by which the proceeds of crime, and the true ownership of those proceeds, are changed so that the proceeds appear to come from a legitimate source. Should report to MLRO, If not in place then directly to SOCA on a suspiciou
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Describe Tipping off?
When the member tells the client that a money laundering report has been made or that there is going to be a money laundering investigation.
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What are the 3 areas where accountants have to have up-to-date technical knowledge?
- Changes in accounting and auditing standards
- Changes in ethical codes
- Changes in relevant criminal law e.g. Bribery, Fraud & Money Laundering
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What are the risks of not acting sustainably?
- Using up scarce resources which could cause price rises.
- Government intervention or legislation to protect the use of scarce resources.
- Fewer products being available in the future as they rely on resources no longer available.
- Damage to the envir
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What are th5 ethical issues?
Self-Interest, Self-Review, Familiarity, Intimidation, Advocacy.
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What are the aims of financial statements?
To identify how well the business has performed/ To identify the value of the assets/ To help understand the cashflow position of the company / To communicate these things to the users of the accounts.
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Why is ROCE the most important ratio?
It is the only ratio which compares profits to the overall size of the business.
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Give an example of a non-cash cost?
Depreciation
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State Characteristics of Management accounts?
Information is produced on a monthly basis/Contain detailed information on productivity and trading./ Contain information on future plans
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State Characteristics of Financial accounts?
Prepared from Trial Balance/Content is determined by company law/Audited by external audit.
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Other cards in this set

Card 2

Front

Tasks associated with management accounting?

Back

Costings/ Budgets/ Analysis of Financial Data / Market Analysis / Forecasting / Assessment of efficiency

Card 3

Front

Tasks associated with financial accounting?

Back

Preview of the front of card 3

Card 4

Front

What is money laundering?

Back

Preview of the front of card 4

Card 5

Front

Describe Tipping off?

Back

Preview of the front of card 5
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