Choose the correct answer for each question.

1. A balance sheet shows:

   1.   ?    the resources owned and controlled by a business at a single point in time
   2.   ?    a record of amounts paid and payable to the Customs & Excise in respect of VAT
   3.   ?    information about the environmental impact of a business
   4.   ?    the profitability of the business for a defined period of time

2. Which of the following statements about audit and auditors is correct?

   1.   ?    sole traders, partnerships and limited companies are all required by law to have an annual audit of their financial statements
   2.   ?    many companies are nowadays exempt from the requirement to have an annual audit of their financial statements
   3.   ?    very large companies are required by law to have their management accounting information audited
   4.   ?    auditors are entitled to veto directors' remuneration packages if they feel that the amounts involved are excessive
      

3. Who appoints the directors of a limited company?

   1.   ?    the auditors
   2.   ?    the shareholders
   3.   ?    a representative committee elected from amongst the shareholders
   4.   ?    a joint committee of shareholders, existing directors and the company auditors
      

4. One of the following statements about management accounting is correct:

   1.   ?    Management accounting helps management to make sure that shareholders are fully informed on a regular basis of all management decisions
   2.   ?    Management accounting is another term for describing the annual reporting to shareholders for which directors are responsible
   3.   ?    Management accounting requires that managers, especially directors, are accountable to the shareholders for their remuneration packages
   4.   ?    Management accounting assists management in controlling the business and making decisions

5. Which of the following statements is correct?

   1.   ?    The stewardship function requires directors of limited companies to act promptly to fulfil all requests for information from shareholders
   2.   ?    The stewardship function requires directors of limited companies to circulate minutes of directors' meetings to shareholders on a timely basis
   3.   ?    The stewardship function requires directors of limited companies to act at all times in the best interests of the company
   4.   ?    The stewardship function requires directors of limited companies to meet shareholders on a regular basis to discuss major strategic decisions