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

Preparation of financial statements — practice question

R plc has a year end of 30 September. Before the financial statements are prepared, the directors have supplied the following information.
(a)[2]

Explain what the term ‘non-adjusting event’ means.

(b)[13]

Prepare the income statement for the year to 30 September 2017.

(c)[3]

Calculate the percentage change in trade receivables for the year ended 30 September 2017.

(d(i))[2]

Calculate the trade receivables collection period for each year.

(d(ii))[5]

Advise the directors whether their current credit control procedures are satisfactory or not. 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: “A non-adjusting event arises after the reporting period” …

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