Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
Source A2 is about drawing up end-of-year financial statements, together with notes to the accounts, for D plc.
(a)[3]
State three functions of the notes to the accounts in the financial statements.
(b)[15]
Prepare the statement of changes in equity for the year ended 31 December 2017. A total column is not needed.
(c)[7]
Advise whether the directors acted in the shareholders' best interests or not. Support your view with relevant calculations.
Worked solution & mark scheme
This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Give extra year-end information in the financial statements” …