Questions Exercises And Problems In Financial Accounting

Divided into a selection of questions, exercises, and problems, this workbook will help keep accountants on top of current international economic affairs. The questions are multiple-choice and ensure understanding of a topic before moving onto the exercises and problems. The exercises can be used to develop proficiency in a topic where students are expected to reach the standard of the problems, and the problems are longer and more complex in nature, requiring an in-depth understanding of the topic. Combined, this complete approach provides a full view of the up-to-date requirements of the International Financial Reporting Standards.

This volume of questions, exercises and problems has been prepared to accompany the textbook A Concepts-Based Introduction to Financial Accounting. The chapters in this book correspond to the chapters in the textbook for ease of use, however the question book can be used independently.

Financial accounting (or financial accountancy) is the field of accounting concerned with the summary, analysis and reporting of financial transactions pertaining to a business. This involves the preparation of financial statements available for public consumption. Stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders are examples of people interested in receiving such information for decision making purposes. Financial accountancy is governed by both local and international accounting standards. GAAP (which stands for Generally Accepted Accounting Principles) is the standard framework for guidelines for financial accounting used in any given jurisdiction. It includes the standards, conventions and rules that accountants follow in recording and summarising and in the preparation of financial statements. On the other hand, IFRS (International Financial Reporting Standards) is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards (IASs). With IFRS becoming more widespread on the international scene, consistency in financial reporting has become more prevalent between global organisations. Whilst financial accounting is used to prepare accounting information for people outside the organisation or not involved in the day-to-day running of the company, management accounting provides accounting information to help managers make decisions to manage the business.