THEORY OF FINANCIAL ACCOUNTING: ANSWER THE FOLLOWING QUESTIONS. Q1a.What characteristics should financial accounting information posses?5mrks b.Explain Users of financial accounting information and their information needs.10mrks C.What are intangible fixed assets? 5mrks d.Give five examples of intangible fixed assets.5mrks Q2a.What is Accumulated fund?3mrks b.Explain the following terms; i.Honorarium.3mrks ii.Life membership.3mrks iii.Prime Cost.3mrks iv.overhead Expenses.3mrks C.List five sources of income for non- trading organisations.5mrks d.Distingish between income statement and a balance sheet.5mrks Q3a.State and explain any five errors that will affect the agreement of a trial balance.10mrks b.State any five errors that will not affect the agreement of a trial balance.5mrks c.Explain the purpose of bank reconciliation statement.2mrks d.Explain the following as used in banking transaction i.Standing order.2mrks ii.credit transfer.2mrks iii.Unpresented cheques.2mrks iv.Uncredited cheques
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