Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The balances below were taken from the records of XY plc on 31 January 2017.
(a)[2]

State two objectives of the financial statements prepared by a limited company.

(b)[15]

Prepare the income statement for the year ended 31 January 2017.

(c)[4]

Prepare the statement of changes in equity for the year ended 31 January 2017. (A total column is not needed.)

(d)[4]

Advise the directors which option should be chosen. Justify your answer.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Supplies information about financial position” …

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