he owner of a small business selling and repairing cars which you patronise has just received a copy of his financial accounts for the current year. He is rather baffled by some of the items and as he regards you as a financial expert, he has asked you to explain certain points of difficulty to him. This you have readily agreed to do. His questions are as follows: a) ‘Describe why amounts for "vehicles" appear under both fixed asset and current asset headings.’
The owner of a small business selling and repairing cars which you patronise has just received a copy of his financial accounts for the current year. He is rather baffled by some of the items and as he regards you as a financial expert, he has asked you to explain certain points of difficulty to him. This you have readily agreed to do. His questions are as follows:
a) ‘Describe why amounts for "vehicles" appear under both fixed asset and current asset
headings.’
b) ‘Explain why the "bank and cash" figure on the
(c) ‘I see the profit and loss account has been charged with
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