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1. My accountant has told me that my business made a profit of £100,000 last year. However over the same time period my bank balance has decreased and not increased as I expected.
Discuss this statement using examples to highlight the roles that the Profit statement and cash flow statement perform in providing relevant financial information to business and why an accounting profit may not be reflected by an increase in cash at bank.
2. Outline the basic principles and major development phases of accounting information systems (AIS).
Include in your answer brief discussion of the key characteristics of useful information supplied by an AIS.
Depreciation on an Motor Vehicle of 5,000,000
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Identify and explain the two ratios that are used to assess the solvency of a business.
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One or more phases in the operation cannot supply all the items it makes concurrently.
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