Answer all questions

1. Distinguish cash accounting from accruals accounting. 6 marks

2.Outline the steps in the accounting process and briefly describe each step. 10 marks

3. Identify any three accounts from the financial statements and give an example of how a/an increase/decrease can occur without a cash flow consequences. 6 Marks

4.Give two reasons for the differences in cash flow and profit. 4 marks

5.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

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

7.Distinguish horizontal analysis from vertical analysis of financial statements. 6 marks

8. 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 costs	100