Page 214 - E1 Integrated Workbook STUDENT 2018

Organisational Management

14 Which of the following statements regarding financial accounting is/are
NOT correct? (Select all that apply)

A Information is used mainly by external parties such as lenders and
shareholders

B Limited companies are required by law to produce financial statements

C Information produced will be both historical and forward-looking in
relatively equal proportions.

D The format and content of financial statements are defined by law

15 Preparing a budget is a useful part of the management accounting
function. Which of the following are advantages of budget preparation?
(Select all that apply.)

A Communication to all parts of the organisation

B Motivation of management through setting appropriate targets

C Ensuring only potentially successful investments are made

D Allowing managers to make their own decisions and act independently at
all times

E Management and utilisation of organisational resources

16 Which THREE of the following are part of the main financial statements?

A Statement of profit and loss

B Statement of tax liability

C Statement of cash flows

D Statement of financial position

E` Statement of financial performance

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