Select a Company listed in the Colombo Stock Exchange in Sri Lanka and use the latest financial statements from the Annual report published by the selected company to answer the following questions.

1. Accounting can be defined as a systematic process of identifying, recording, classifying, verifying, summarizing, and analyzing the financial information of an organization. Briefly, explain the main objective of Accounting?

2. Select three accounting policies used by the company in the preparation of financial statements from the annual report and explain the importance of those policies and the accounting concepts/principles relevant for the same.

3. Using the financial statements of the selected company Calculate liquidity, profitability, efficiency and solvency ratios for the recent two years and write a brief report to the board on the status of the financial position and financial performance of the company.

4. If the purchase cost of a tangible fixed asset (Property, Plant & Equipment) is not charged to the income statement in the year of purchase, how can a company recognize expenses relating to these assets in the financial statements?

5. Why might the revenue and cost figures shown on a standard income statement not be representative of the actual cash inflows and outflows that occurred during a period? What is the difference between income and profit?

vi. State five stakeholders of a business organization and explain why each of them is interested in the affairs of a business organization?

Answer rating: 100% (QA)

i Accounting is not just for accountants to have a job Accounting is a systematic process recording classifying summarizing interpreting and reporting financial transactions of a business to the inter... View the full answer