A lot of theory that is also useful for this chapter is included in Chapter 16.
1 Who prepares published accounts? 2 What is a patent? 3 What does the term Patent Amortised refer to? 4 Where is Patent Amortised included in the accounts? 5 What items are included in cost of sales? 6 Give an example of items that are included as an administration expense. 7 Give an example of items that are included as a distributive expense. 8 Give an example of items that are included as other operating income. 9 Explain what a Fixed Asset Investment is.
10 Differentiate between a quoted investment at cost and an unquoted investment. 11 Explain what an audit is and outline its purpose. 12 Why is the auditor referred to as a ‘watchdog’ and not a ‘bloodhound’? 13 Explain what a qualified auditor’s report is. 14 Explain what an unqualified auditor’s report is. 15 Outline the role of the Accounting Standards Board. 16 List five items that must be included in the director’s report. 17 Explain the term Exceptional Item. 18 Explain the term Contingent Liability. 19 Explain how to deal with a Contingent Liability that you are likely to be liable for. 20 Explain how to deal with a Contingent Liability that you are not likely to be liable for.
