May/June 2022

Which of the statements are correct?

Analysis and communication of accounting information

By 31 December 2021, the business had worked out a draft profit for the year of $\text{\$}57500$. It was then found that the following adjustments had to be made. What is the correct profit for the year?

Preparation of financial statements

Closing inventory has been stated at too low a value. What effect will this have on the financial statements?

Preparation of financial statements

A sole trader supplied the details below. Net assets at 1 January 2021: $10000$ Net assets at 31 December 2021: $24000$ In the year ending 31 December 2021: Drawings during the year: $3200$ Cash brought in by the owner: $6000$ Motor vehicle brought in by the owner: $2500$ What profit did the trader make for the year ended 31 December 2021?

Preparation of financial statements

What will be applicable to a partnership if no partnership agreement exists?

Types of business entity

X and Y operated as partners, with profits and losses being divided equally. On 1 January, P joined the partnership as a partner. He introduced $20000$ cash and $10000$ in other assets. On this date, the non-current assets were written up by $12000$. No adjustment was made for goodwill. The sharing of profits and losses remained equal. What was the balance on P’s capital account after all the necessary entries had been posted?

Types of business entity

Daisy, Freddie and Harry had been partners for several years, and the profits were divided equally between them. Harry chose to leave the partnership. At the time of retirement, Harry’s capital account and current account showed credit balances of $40000$ and $8000$. The partnership’s total assets were recorded in the books at $98000$, but their estimated realisable value was $116000$. No goodwill adjustment was made. How much did Harry obtain from the partnership when he retired?

Types of business entity

A company carried out a bonus issue of one ordinary share for every five ordinary shares held. What is the impact on share capital and reserves and net assets?

Types of business entity

When its first year of trading had ended, a company gave the information below. Dividends: $3000$ was paid during the year, and $5800$ was proposed at the year end. Debenture interest: $4000$ was paid during the year, and $1600$ had accrued at the year end. Directors’ salaries: $10800$ was paid during the year, and nil was outstanding at the year end. By what total amount do these items decrease the profit for the year?

Preparation of financial statements

M Limited shows the following balances at 1 January 2021. Ordinary share capital: $500000$ shares of $0.50$ each = $250000$ Share premium: $10000$ General reserve: $40000$ Retained earnings: $50000$ In the year ended 31 December 2021: 1. $0.02$ per share was paid as an interim dividend 2. $20000$ was transferred into the general reserve For the year ended 31 December 2021, the company reported a profit for the year of $80000$. What is the maximum extra dividend payable per ordinary share for the year ended 31 December 2021?

Preparation of financial statements

Which ratios count as efficiency ratios?

Analysis and communication of accounting information

Which accounting concepts do not provide reasons for recording depreciation in the income statement?

Accounting for non-current assets

The information below is given for a limited company. Closing inventory: $30000$ Inventory rose by $50\%$ from the beginning of the year Inventory turnover rate: $8$ times Gross profit for the year: $200000$ What was the company’s sales revenue for the year?

Analysis and communication of accounting information

Which item counts as a direct cost?

Costs and cost behaviour

A business gives its employees $2$ for every unit of X they assemble and $3.20$ for each unit of Y they assemble. Each month, output is $1800$ units of X and $1000$ units of Y. The factory supervisor earns $1000$ per month. How much is the direct labour cost per month?

Costs and cost behaviour

An employee does a $35$-hour week and earns an hourly rate of $24$. On top of her basic pay, she is given a bonus equal to $25\%$ of her hourly rate. This is worked out from the time saved compared with the target number of units produced. Each unit is expected to take $15$ minutes to make. During a $35$-hour week she made $170$ units. From these, $2$ units were rejected and her overall pay was cut by $2.50$ for each unit. What were her wages for the week?

Costs and cost behaviour

A manufacturing business calculates its overhead absorption rate using direct labour hours. What causes over-absorption of overhead?

Traditional costing methods

A company supplies the following figures for one month. Actual direct labour hours worked: $4500$ Budgeted direct labour hours: $5000$ Budgeted overhead expenditure: $80000$ Overheads under-absorbed: $12000$ Calculate the amount of the actual overhead expenditure.

Traditional costing methods

What is the contribution to sales ratio used to determine?

Costs and cost behaviour

The information below concerns a business in its first year of trading. Production: $5000$ units Sales: $4000$ units Unit selling price: $10$ Variable production cost per unit: $4$ Selling expense per unit: $1$ Total fixed manufacturing overhead: $13000$ What is the amount of gross profit if the business uses absorption costing to value its inventory?

Traditional costing methods

A firm manufactures and sells one product type with a selling price of $20 per unit. Variable costs amount to $8 per unit. Total fixed costs are $7000. The firm aims to earn a target profit of $20 000. How many units must be produced and sold in order to reach the target profit?

Costs and cost behaviour

In the previous year, a company sold 2000 units and earned a contribution of $50 for each unit. Once total fixed costs had been subtracted, profit came to $60 000. In the current year: sales volume rose by 10% contribution per unit fell by 5% total fixed costs rose by 25%. What profit did the company achieve this year?

Costs and cost behaviour

A non-current asset was acquired on 1 January 2019 for a price of $\text{\$}290000$. In addition, delivery and installation expenses of $\text{\$}10000$ were paid. The asset is depreciated using the reducing balance method at $20\%$ per annum. A full year’s depreciation is recorded in the year of purchase, and no depreciation is recorded in the year of disposal. The non-current asset was then sold on 31 December 2021 for $\text{\$}205000$. Further disposal expenses of $\text{\$}5000$ were paid. What was the profit on disposal?

Accounting for non-current assets

Which statement is not relevant to budgeting?

Analysis and communication of accounting information

A sole trader bought a machine for $\text{\$}30000$, and its estimated residual value was $\text{\$}5000$. Its useful life was forecast to be five years. During the fourth year’s end, the machine was sold for a profit of $\text{\$}200$. Depreciation is calculated by the straight-line method. One full year’s depreciation is charged for every year that the asset is held. Calculate the amount of sale proceeds.

Accounting for non-current assets

Which statement concerning control accounts is not correct?

Reconciliation and verification

By the end of a financial period, a business’s trial balance failed to agree, so a suspense account was opened. These errors were then found. Once the items were adjusted, the suspense account was cleared. What was the opening balance of the suspense account?

Reconciliation and verification

Which statements concerning a bank reconciliation are correct?

Reconciliation and verification

At the start of the financial year, inventory had a value of $\text{\$}15000$. Over the year, sales of $\text{\$}21000$ and purchases of $\text{\$}18000$ took place. Regrettably, every item of inventory was stolen on the final day of the financial year. Goods are marked up by $50\%$ to work out selling price. What is the cost of the stolen inventory?

Preparation of financial statements

Which figure is used to work out the general provision for doubtful debts?

The accounting system

Which accounting concept says that revenue may be recognised only once it has been earned?

The accounting system

On 31 December 2021, the draft statement of financial position of a business reported total assets of $1000000. The following errors were later found. 1. A rise in the provision for doubtful debts, $5000, had not been entered. 2. Closing inventory had been overstated by $20000. 3. Depreciation, $10000, had not been entered. What was the adjusted total assets value?

Preparation of financial statements

On what basis does a trading business prepare an income statement?

Preparation of financial statements

The following information is available for a business. Revenue $140\,000$ Opening inventory $22\,000$ Closing inventory $24\,500$ Purchases $120\,000$ Goods are sold at cost plus $25\%$. The owner has removed goods for personal use, but these have not been entered as drawings. What is the value of the goods removed for personal use?

Reconciliation and verification

A business owner does not keep a complete set of accounting records. By the close of the accounting period, the following details are given. Trade payables: Opening balance $22\,500$ Closing balance $27\,400$ Returns outwards $1\,000$ Payments to trade payables $110\,600$ No cash purchases were made. Inventory at the start and at the end stayed at the same figure. What was the cost of sales?

Preparation of financial statements

If the partners fail to prepare a partnership agreement, the terms of the Partnership Act will apply. Which statement is correct as a rule under the Partnership Act?

Types of business entity

Dua and Noor are partners and divide profits and losses equally. Zee was admitted, and profits and losses are now shared in the ratio Dua : Noor : Zee, $2:2:1$. When Zee was admitted, the value of tangible assets fell by $20\,000$ and goodwill was assessed at $60\,000$, although it was not kept in the books of account. What was the net decrease on Noor’s capital account?

Types of business entity

The details below are given for a partnership. Profit for the year before interest $15\,000$ Interest on partner’s loan to the firm $1\,000$ Interest on capital $2\,000$ Drawings $10\,000$ Which profit figure should be distributed among the partners?

The accounting system

Which item ought not to be included in a statement of changes in equity?

Preparation of financial statements

The information below has been taken from the statement of financial position of a limited company. $6\%$ debenture (2026-2028) $20\,000$ $400\,000$ ordinary shares of $\$1$ each $400\,000$ 5-year bank loan $200\,000$ Share premium account $50\,000$ Retained earnings $75\,000$ Calculate the value of total equity.

Preparation of financial statements

At 1 January, X Limited’s share capital consisted of $100\,000$ ordinary shares that had been issued at a par value of $\$1$ per share. No share premium account existed. On 1 March, the company carried out a bonus issue of one additional ordinary share for every five ordinary shares already held, using retained earnings. On 1 June, the company carried out a rights issue of one new ordinary share for every four ordinary shares held, at $\$1.50$ each. Every right was accepted. What amount was shown in the share premium account?

Preparation of financial statements

For his machinery, a sole trader has changed the depreciation method from the reducing balance method in year 1 to the straight-line method in year 2 of trading, with the same percentage rate applied in both cases. What effect does this have on the net book value of machinery and profit for year 2?

Accounting for non-current assets

The information below relates to a business. Sales revenue $500\,000$ Purchases $365\,000$ Gross margin $25\%$ Mark-up $33\tfrac{1}{3}\%$ Opening inventory $20\,000$ What was the value of closing inventory?

Preparation of financial statements

The extract below is taken from a company’s statement of financial position at 30 September. Non-current assets $120\,000$ Inventory $35\,000$ Trade receivables $23\,000$ Cash at bank (debit balance) $12\,000$ Trade payables $15\,000$ Bank loan repayable within 12 months $40\,000$ What is the liquid (acid test) ratio?

Analysis and communication of accounting information

The cost of direct materials is going up. What would be the effect if a business used first-in-first-out (FIFO) rather than average cost (AVCO) to value inventory in this situation?

Traditional costing methods

Q Limited uses machine operators and supervisors. Every machine operator makes $100$ units each week. A supervisor may oversee as many as $10$ machine operators and receives $\$550$ per week. Output is $7700$ units per week. What type of cost is the supervisors’ pay, and what is their total pay each week?

Costs and cost behaviour

What is one drawback of absorption costing?

Traditional costing methods

The information below refers to one accounting period. inventory at the start: $40\,000$ units inventory at the end: $44\,000$ units absorption cost profit: $\$284\,000$ marginal cost profit: $\$250\,000$ What overhead absorption rate per unit applied in this accounting period?

Traditional costing methods

The selling price of a product stays unchanged. Under which circumstances will the break-even point in units fall?

Costs and cost behaviour

A business produces and markets only one kind of product. Each unit is sold at $\$50$, while variable costs come to $\$30$ per unit. Fixed costs in total amount to $\$500\,000$. How many units must the company sell in order to earn a profit of $\$300\,000$?

Costs and cost behaviour

A company produces and sells three product variants, M, N and O. The details below are given for each unit: Unit selling price: M $240$, N $280$, O $250$ Direct material cost: M $110$, N $120$, O $90$ Direct labour cost: M $65$, N $90$, O $100$ Variable overhead cost: M $20$, N $30$, O $25$ Fixed overhead cost: M $50$, N $30$, O $18$ Profit/(loss): M $(5)$, N $10$, O $17$ The same direct material is required by every product, and this material is scarce. In what order of priority ought the products to be made to achieve the highest possible profit?

Costs and cost behaviour

A business is given the following data. break-even point: $5000$ units variable costs per unit: $\$27$ contribution to sales ratio: $40\%$ What is the total amount of fixed cost?

Costs and cost behaviour

Paul’s year end is 31 December. On 1 January 2020, he purchased a non-current asset costing $10000. He disposed of it on 1 January 2021 for $5850. Paul normally charges depreciation at $10\%$ per annum. He charges a full year’s depreciation in the year the asset is acquired and no depreciation in the year it is sold. He did not make any depreciation allowance for this non-current asset. What was the impact of this mistake on Paul’s profit for the year ended 31 December 2021?

Accounting for non-current assets

What is the purpose of a business preparing budgets?

The accounting system

A business charges depreciation on its machinery at $10\%$ per annum by the straight-line method, calculated month by month. The business’s financial year end falls on 30 June. Machinery that cost $6600 on 1 April 2020 was disposed of on 30 November 2021. The profit on sale was $350. What were the sale proceeds?

Accounting for non-current assets

Why does a business keep sales and purchases ledger control accounts as part of the double entry accounting system?

The accounting system

Doug got his business bank statement. He brought the cash book up to date and then prepared the bank reconciliation statement. Which items were shown in the bank reconciliation statement?

Reconciliation and verification

On 31 December 2021, the sales ledger control account showed a balance of $19100, whereas the total of the balances in the sales ledger came to $20900. After the mistakes had been found, the following reconciliation statement was drawn up. Sales ledger control account balance: $19100 Credit sales left out of the sales journal: $1600 Discount allowed recorded too low in the sales ledger: $200 Sum of the balances in the sales ledger: $20900 What should the total trade receivables be, as reported in the statement of financial position?

Reconciliation and verification

At the end of the year, Victor held 100 units of inventory, each of which cost $12 per unit. From this total, eight units were delivered on the final day of the year and had not yet been paid for. A further six units were damaged and could be sold for $10 each after repairs costing a total of $20 had been carried out. What value of inventory should be shown in Victor’s financial statements at the end of the year?

Preparation of financial statements

Which items are classified as expenses in the income statement?

Preparation of financial statements

Mia has agreed to provide goods to a customer on a sale or return basis. By the close of her financial year, the customer has still not said whether they will keep the goods. Which accounting concept should Mia use for these items in her financial accounts?

The accounting system

The following details were given by a business about its first year of trading. Credit sales $93730. Receipts from credit customers $76500. Irrecoverable debt written off $150. Contra entered between purchases ledger and sales ledger $80. At the close of the year, the net trade receivables shown in the statement of financial position amounted to $16660. What was the balance on the provision for doubtful debts account at the end of the year?

Reconciliation and verification

Which items are shown in the income statement of a sole trader? 1 interest payable on bank loan 2 interest payable on capital 3 transfer into profiler general reserve

Preparation of financial statements

For the trader’s first year of trading, a summary of his bank statements gave these figures: receipts from credit customers: $25000 cash sales takings banked: $82000 Each month, the trader withdrew $2000 from takings as drawings before banking the rest of the takings. At the end of the year, trade receivables were $9500. Calculate the total revenue for the year.

The accounting system

Jane supplied these details for her business. 1 January 2021 / 31 December 2021 Total assets: $108000 / $119000 Current liabilities: $7500 / $11500 Over the year, the business received a long-term loan of $10000 and Jane’s drawings came to $12000. What was Jane’s profit for the year ended 31 December 2021?

Preparation of financial statements

Which factors can lead a partnership to revalue its tangible non-current assets? 1 admission of a new partner 2 change in the profit-sharing ratios 3 retirement of a partner

Accounting for non-current assets

L and M formed a partnership and divided profits and losses in the proportion $2:1$. On 31 December 2021, the partnership statement showed these assets and liabilities: Non-current assets at net book value: $600000 Inventory: $50000 Trade receivables: $40000 Bank: $5000 debit Trade payables: $20000 Capital and current account L: $350000 Capital and current account M: $325000 The partnership ended on 31 December 2021. On that date, the following transactions occurred: 1 The non-current assets were disposed of for $654000. 2 Inventory was sold for $80000. 3 All trade receivables were received in full and trade payables were paid at their book values. 4 Realisation expenses amounted to $6000. Calculate L’s share of the realisation profit.

Types of business entity

X, Y and Z form a partnership and share profits and losses in the ratio $5:2:3$. Y receives a salary of $18000 per annum. The partners are paid interest at $6\%$ per annum on the balances in their capital accounts at the start of the year. At the start of the year, the capital account balances were: X: $30000 Y: $22000 Z: $20000 The profit for the year, before Y’s salary and the partners’ interest on capital are deducted, is $140000. What is Y’s share of the total profits?

Preparation of financial statements

Over the year, a business issued $1 ordinary shares at $1.20 apiece. At the end of the year, the directors recommended a final dividend. Which balances shown in the statement of changes in equity were influenced by these transactions?

Preparation of financial statements

During a certain period, the company’s bank transactions included the following items: Share issue proceeds: $30000 Sale of non-current assets: $5000 Dividend paid: $9000 Increase in bank loan: $6000 What was the net rise in the company’s bank balance because of these transactions?

Preparation of financial statements

At 1 January 2021, W Limited's total revenue reserves stood at $122000. In the year ending 31 December 2021, the following events occurred: 1 A dividend of $7500 was paid. 2 An amount of $10000 was moved from retained earnings to general reserve. 3 Premises were revalued upwards by $19800. For the year ending 31 December 2021, W Limited recorded a profit for the year of $32000. What was the total of revenue reserves at 31 December 2021?

Preparation of financial statements

Which item ought to be classified as capital expenditure?

Accounting for non-current assets

What action would raise the current ratio of a business?

Analysis and communication of accounting information

A business has the following information: Sales: $36000 Purchases: $21000 Inventory at 1 January 2021: $3500 Inventory at 31 January 2021: $2800 Calculate the rate of inventory turnover for January.

Analysis and communication of accounting information

Which statements about a semi-variable cost are correct? 1 A part of the amount varies at every output level. 2 A part of the amount varies for a particular output level. 3 The whole amount varies for a particular output level.

Costs and cost behaviour

The financial year of a company finishes on 30 November, and there is no opening inventory at the start of the financial year. In the year, inventory is bought in the following amounts: - 30 March: 330 units at a unit cost of $40$ - 1 November: 288 units at a unit cost of $50$ Sales in the period total 500 units sold at $100$ per unit. The inventory is measured by the average cost (AVCO) method. Calculate the value of inventory, to the nearest dollar, at the end of the year.

Traditional costing methods

For output of $50\,000$ units, a business has prepared the following budgeted figures. Costs: - direct production cost: $300\,000$ - indirect labour: $20\,000$ - factory supervisor salaries: $60\,000$ - sales staff salaries: $70\,000$ - depreciation on machinery for production: $80\,000$ - depreciation on motor vehicles for delivery: $50\,000$ - administrative expenses: $360\,000$ - total costs: $940\,000$ To set the selling price, the business adds $40\%$ to the cost of production. What is the total selling price of $500$ units?

Costs and cost behaviour

A trader hires a vehicle for $10\,000$, which permits him to travel up to $20\,000$ miles in each financial year. If this limit is passed, a further charge of $5000$ is applied. What type of cost does this represent?

Costs and cost behaviour

When would a business work out its contribution-to-sales ratio instead of contribution per unit?

Costs and cost behaviour

The data given are: - unit selling price: $50$ - variable manufacturing cost per unit: $26$ - variable selling cost per unit: $4$ - total manufacturing overheads: $360\,000$ - total administrative overheads: $120\,000$ Determine the break-even point in units?

Costs and cost behaviour

K Limited produces and sells just one kind of product. The budgeted data for this product are as follows: - selling price: $80$ per unit - variable costs: $28$ per unit - total fixed costs: $70\,000$ - production and sales: $3500$ units How many additional units must the company produce and sell in order to raise the budgeted profit by $26\,000$?

Costs and cost behaviour

M Limited produces and sells two distinct colours of paint. The actual figures below relate to last year: For red paint: - revenue: $350\,000$ - direct materials and labour: $180\,000$ - allocated fixed overheads: $110\,000$ - profit/(loss): $60\,000$ For blue paint: - revenue: $150\,000$ - direct materials and labour: $65\,000$ - allocated fixed overheads: $88\,000$ - profit/(loss): $-3\,000$ Overall: - revenue: $500\,000$ - direct materials and labour: $245\,000$ - allocated fixed overheads: $198\,000$ - profit: $57\,000$ The company is thinking about shutting the blue paint department and using the freed space to raise revenue from red paint by $20\%$. Variable costs will rise in the same ratio as the rise in revenue. What is the resulting change in total profit if this plan is implemented?

Costs and cost behaviour

A business has a financial year end of 31 December. It bought a vehicle on 1 January 2019 for $30000. The business uses the reducing balance method to depreciate vehicles at 20% per annum. Depreciation is worked out on a monthly basis. The vehicle was sold on 30 September 2021. A profit on disposal of $3000 had already been calculated. However, no entries had been made to record the depreciation for 2021. What impact did failing to record the depreciation for 2021 have on the profit on disposal?

Accounting for non-current assets

For what reasons might a business draw up budgets?

The accounting system

A trader acquired a machine on 1 January 2019. It was depreciated at 10% per annum by the straight-line method. He disposed of the machine on 1 January 2021 for $4000. The profit on disposal was $200. What was the machine’s original cost on 1 January 2019?

Accounting for non-current assets

Which entry appears on the credit side of a sales ledger control account?

The accounting system

The bank column in the cash book showed a credit balance of $2915. This was not the same as the balance shown on the bank statement. It was later found that: 1. a bank transfer of $150 from a customer had not been entered in the cash book 2. a cheque for $450 received from a customer had not been entered on the bank statement 3. a cheque for $530 paid to a supplier had been entered incorrectly in the cash book as $350, although the bank recorded it correctly 4. bank charge of $25 had not been entered in the cash book. Once these items had been adjusted, the cash book balance matched the balance on the bank statement. What balance was shown on the bank statement before any adjustments were made?

Reconciliation and verification

Which error’s correction would need an entry in the suspense account?

Reconciliation and verification

The rent and rates expense shown in the income statement for the year ended 31 December 2021 was $76230. The following additional information was available. Rent accrued: balance brought forward 1 January 2021 $4000; balance carried forward 31 December 2021 $6500. Rates prepaid: balance brought forward 1 January 2021 $770; balance carried forward 31 December 2021 $820. How much was paid from the bank account for rent and rates during the year ended 31 December 2021?

Preparation of financial statements

Which of the following statements about a sole trader's financial statements are correct?

Preparation of financial statements

Khin is a retailer. The balances below have been taken from his books of account at 31 January 2022.

Accounting for non-current assets

Yasmin operates as a sole trader. She has drawn up a trial balance. Certain mistakes are not exposed by a trial balance.

Reconciliation and verification

Maria and Rio have been partners for several years, and they are now thinking about bringing in a new partner.

Types of business entity

N Limited makes one product at a single factory, and the company applies marginal costing.

Costs and cost behaviour

Karen and Lee are partners who share profits and losses in the ratio $2:3$ respectively. The balances shown below were available at 28 February 2022.

Preparation of financial statements

V Limited owns several non-current assets. These assets lose value because of a range of causes, including wear and tear.

Accounting for non-current assets

N Limited operates as a trading company. Its statement of financial position on 31 December 2021 is shown below.

Analysis and communication of accounting information

F Limited is a manufacturing company that uses absorption costing at one of its factories. That factory includes two production departments and two service departments. The budgeted costs have already been allocated as well as apportioned.

Traditional costing methods

At a separate factory, the company makes two products by marginal costing. The information given includes costs, selling prices, output levels and the available alternative choices.

Costs and cost behaviour

K Limited’s financial year finished on 31 December 2021. The income statement for the year ending on that date had already been drawn up. The information below was available at the year-end.

Preparation of financial statements

Rakesh drew up his business’s year-end financial statements on 30 September 2021.

Accounting for non-current assets

Nibras trades in goods, buying and selling them for cash as well as on credit. Control accounts are used to verify that the business’s purchases and sales ledgers are accurate. The information below applies to January 2022.

Reconciliation and verification

G Limited runs production at two factories and makes products there. The company applies marginal costing.

Costs and cost behaviour

Please read Source A1 in the insert.

Preparation of financial statements

Refer to Source A2 in the insert.

Preparation of financial statements

Refer to Source A3 in the insert.

Analysis and communication of accounting information

Study Source A4 in the insert.

Preparation of financial statements

Read Source B1 from the insert.

Activity based costing (ABC)

Consult Source B2 in the insert.

Budgeting and budgetary control

Refer to Source A1 in the insert.

Preparation of financial statements

Refer to Source A2 in the insert.

Preparation of financial statements

Go to Source A3 in the insert.

Analysis and communication of accounting information

Use Source A4 in the insert.

Business acquisition and merger

Look at Source B1 in the insert.

Budgeting and budgetary control

Refer to Source B2 in the insert.

Investment appraisal

Read Source A1 in the insert. The question concerns the financial statements of a club, including café trading and subscriptions.

Preparation of financial statements

Read Source A2 in the insert provided.

Preparation of financial statements

Consult Source A3 in the insert.

Analysis and communication of accounting information

Study Source A4 in the insert.

Preparation of financial statements

Consult Source B1 in the insert.

Activity based costing (ABC)