Accounting Assignment 2

Anastasia Semenova 120053

1: The UK accounting standards set in 2006 include the requirements of the European law. For example, it requires small limited companies to have a certain percentage of their documents to be available to the public through Registrar of Companies. 2: 1. Establishing financial report and accounting standards in the UK. 2. Collaborate with accounting standards-setter from other countries in to come to the best regulations. 3: Mission of IASB 4: Understandable for people with basic business and economy skills. Relevance to the decision making need of users. Reliability the information needs to be free som errors and true. Comparability the information has to be comparable with other periods of time and other companies. 5: Sellers name, buyers name, amount paid, date, product, invoice reference, VAT. 6: A credit note is issued by the seller to buyer. The purpose is to remember to pay back the buyer either a lower sum or the same as invoice, which is done by issuing a credit memo and then repaying. 7: A book of prime entry is a long list of daily transactions in a certain category, which makes the accounting process much easier and shorter than updating the ledgers each time a transaction is made. The books of prime entry: sales day book, purchases day book, sales returns day book, purchase returns day book, the cash book, the journal. 8: Petty cash is the small amount of funds to be used for expenses not worth to write a cheque for due to inconvenience. 9: Balance sheet (including shareholder equity), assets, liabilities. 10: Revenue, expenses, net-profit, loss all over a fiscal year.