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

Preparation of financial statements — practice question

Consult Source A4 in the insert.
(a)[3]

State three features of financial statements that demonstrate a ‘true and fair view’.

(b)[9]

Explain to the directors how information items 1i, 1ii and 2 should be accounted for, referring to the relevant International Accounting Standards (IAS).

(c)[10]

Prepare the revised statement of financial position at 31 December 2020 using all the information provided.

(d)[3]

Comment on whether the director’s statement is correct. Support your answer with reasons.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Accurate in fact / no fraud

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