ATD 1 August 2022 Introduction to Financial Accounting Answers

Institution: KASNEB

Course: ATD Level 1

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ATD 1 August 2022 Introduction to Financial Accounting Answers

ATD LEVEL 1
INTRODUCTION TO FINANCIAL ACCOUNTING
AUGUST 2022 ANSWERS
QUESTION ONE
(a) Advantages of preparing financial statements
The basic financial statements of a business are the statement of profit or loss, statemen of financial position, and statement of cashflows. The advantages of preparing these financial statements include;
(i) Helps in cashflow planning – By preparing the cashflow statement, the managers are able to plan how to use available cash or borrow cash for investments if there is cash deficit.
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