Question: Explain why it is important for financial statements to be prepared according to these concepts; a) Going concern (4 marks) b) Prudence (4 marks) c)Consistency

Explain why it is important for financial statements to be prepared according to these concepts;

a) Going concern (4 marks)

b) Prudence (4 marks)

c)Consistency (4 marks)

Define and explain the purpose of sustainability reporting.( 6 marks)

Distinguish horizontal analysis from vertical analysis of financial statements. (6 marks)

Prepare a trial balance from the list of the following account balances. (10 marks)

bank 2600
receivables 3400
stationery 100
office equipment 1600
payables 450
wages 100
capital 2750
service rendered 6500
rent expense 1200
advertising cost 100

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