1. Briefly explain what you understand by the accruals concept.
2. Briefly describe the difference between a statement of cash flows and a cash flow forecast.
3. An organization is owed £50,000 by its trade debtors (receivables) and in relation to its credit sales on 31.12.20X4. During the year to 31.12.20X5, it makes credit sales of £750,000. At 31.12.20X5, it is owed £125,000 by its trade debtors.
4. How much money did the organization receive from its trade debtors and in the year to 31.12.20X5?
5. How will the above information affect the organization's:
6. Opening and closing statements of financial position (as at 31.12.20X4 and 31.12.20X5);
7. Income statement for the year to 31.12.20X5;
8. Statement of cash flows for the year to 31.12.20X5 (using the indirect method)?