C2 - Accounting Function Flashcards Preview

AAT Accounting Systems & Control L4 AQ2016 > C2 - Accounting Function > Flashcards

Flashcards in C2 - Accounting Function Deck (17)
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1
Q

What is a public sector organisation?

A

Owned or controlled by the state/government.

Their main aim is to provide a service (for example: education, hmrc and health)

2
Q

What is a private sector organisation?

A
  • Private business owned by the shareholders but ran by the directors.
  • Sole traders or partnerships
  • profit making organisation
  • directors responsible for choosing acc’ing policies
3
Q

What is a quoted PLC

A

Similar to a private sector organisation (privately owned) but the shares are bought and sold on.

4
Q

What does the accounting system include?

A
  • payroll
  • costing and budgeting
  • raising finance
  • processing and recording financial transactions
5
Q

Organisational structure -

flat structure (large organisation)

A

Operating divisions of an org are independent and have their own accounting systems.

Overall management of a large organisation responsible for all separate companies with their own accounting staff/systems

6
Q

Organisational structure -

Hierarchical structure (large org)

A

A variety of different management levels within a large company.

For example:
Managing director responsible for sales director who is responsible for marketing, supervisors and support staff. Managing director responsible for finance director who is responsible for M & F accountants, supervisors and assistants.

7
Q

Accounting systems -

External contacts??

A

Sales ledger - dealing with customers
Financial acc’ing - dealing with financial reports and VAT returns
Purchase ledger - dealing with suppliers
Payroll - dealing with bank payments

8
Q

Accounting systems -

Internal contacts??

A
Sales ledger - customer balances 
Cashier - processing sales 
Purchase ledge - ordering stock 
Payroll - paying employees 
Costing - monitoring budget and pricing
9
Q

Control of resources -

4 main headings??

1) E and M
2) HR
3) I
4) FR

A

1) equipment and materials - equipment needed on a day to day basis and any raw materials or inventory which may be used.
2) Human Resources - employment required
3) information - up to date, on a computer screen and accurate information about specifications, prices or orders.
4) financial resources - money held at the bank or can be made available within a set period.

10
Q

How can costs be managed in an organisation that manufactures multiple items?

A

Cost per unit

Sales per unit

Profit per unit

11
Q

How should profitability be managed in an organisation that manufacturers multiple products?

A

Standard costing

Variances

12
Q

Reconciliations with supplier statements and plca..

Would a purchase invoice being omitted from the suppliers account be detected or not?

A

Detected

13
Q

Reconciliations with supplier statements and plca..

Would a purchase invoice being posted to the wrong account be detected or not?

A

Detected

14
Q

Reconciliations with supplier statements and plca..

Would a supplier sending an invoice for goods not received be detected or not?

A

Not detected

15
Q

Reconciliations with supplier statements and plca..

Would a suppliers change in prices be detected or not?

A

Not detected

16
Q

Reconciliations with supplier statements and plca..

Would an inputting error or the amounts be detected or not?

A

Detected

17
Q

Who should money laundering suspicions be reported to?

A

National crime agency