Farm And Club A/c's

Question 1

Four reason farmers prepare a/c’s

Answer 1

To see if the farm has made a profit or loss
To know how much money is spent and received in a year
To apply for grants
To see how much the farm is worth

Question 2

What is the role of the treasurer in a club

Answer 2

Responsible for collecting subscriptions on behalf of club
Responsible for making all club payments
Responsible for preparing the club accounts
To present a report and advise on the clubs finances at the AGM

Question 3

What is the term used to indicate a clubs capital

Answer 3

Accumulated fund

Question 4

What could a clubs accumulated fund be used for

Answer 4

To finance further expansion
May be used to purchase capital items like fixed assets
To make up excess expenditure

Question 5

Give four purposes of a treasurer’s report about the clubs final accounts

Answer 5

To assist members in future decision making
To inform members details of the clubs assets
To inform members details of the clubs liabilities
To inform members details of clubs surplus/deficit

Question 6

List four items included in a treasurer’s report

Answer 6

Income and expenditure account
Summary of receipts and payments cash account
Performance of the shop trading account
Financial plans and projections for future

Question 7

Explain depreciation

Answer 7

Decline in value of a fixed asset

Question 8

Give three causes of depreciation

Answer 8

Usage/wear and tear
Passing of time
No longer used or produced /obsolete

Question 9

What is the formula for gross margin

Answer 9

Gross profit divided by sales

Multiplied by 100/1