Questions from General Accounting


Q: Nelson Ltd was incorporated in 2003 with an authorized share capital of

Nelson Ltd was incorporated in 2003 with an authorized share capital of 500,000 £1 ordinary shares, and 200,000 5 per cent cumulative preference shares of £1 each. The follow...

See Answer

Q: The following trial balance has been extracted from the books of Keith

The following trial balance has been extracted from the books of Keith Ltd as at 30 June 2020: Additional information: 1 Inventory at 30 June 2020 valued at cost amounted to £155,000. 2...

See Answer

Q: You are presented with the following information relating to three companies:

You are presented with the following information relating to three companies: Statement of profit or loss for the year to 31 March 2021 Required: Calculate the following accounting ratios: (a) Return...

See Answer

Q: Critically evaluate the relationship between a company’s external auditor and its directors

Critically evaluate the relationship between a company’s external auditor and its directors.

See Answer

Q: Discuss the concept of ‘independence’. Why is that so important

Discuss the concept of ‘independence’. Why is that so important for audits?

See Answer

Q: The concept of limited liability is an out-of-date

The concept of limited liability is an out-of-date nineteenth-century concept.’ Discuss.

See Answer