I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 

17 

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Financial reporting is a way of recording, analysing and summarising financial data. 

 

Businesses of whatever size or nature exist to make a profit. 

 

Financial accounting and management accounting are different. The FFA/FA syllabus focuses on 

financial accounting. 

 

There are various groups of people who need information about the activities of a business. 

 

Those charged with governance of a company are responsible for the preparation of the financial 

statements. 

 

The principal financial statements of a business are the statement of financial position and the 

statement of profit or loss. 

 

 

1 

Fill in the blanks. 

 

Financial reporting is a way of ………….., …………… and ……………. financial data. 

2 

A business entity is owned and run by Alpha, Beta and Gamma. 

What type of business is this an example of? 

A Sole 

trader 

B Partnership 

C 

Limited liability company 

 D 

Public 

company 

 

3 

Identify seven user groups who need accounting information. 

4 

What are the two main financial statements drawn up by accountants? 

5 

The directors of a company are responsible for the preparation of the financial statements of a company. 

 

True or false? 

6 

Which of the following is an example of a liability? 

A Inventory 

B Receivables 

C 

Plant and machinery 

 D 

Loan 

 

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