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EnglandAccountingQuick questions

3.1 Financial accounting

Quick questions on The role of the accountant: purpose, users and ethics - AQA A-Level Accounting

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Distinguish between bookkeeping and accounting. [2 marks] Bookkeeping records transactions accurately in the correct accounts; accounting classifies, interprets and reports on those records to support decisions.
What is q2?
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Identify two external users of a company's accounts and state what each needs. [4 marks] For example a lender (whether the loan will be repaid, using gearing and interest cover) and HMRC (the corporation tax and VAT due).

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