The Case Study

Jeffrey owns JT Engineering and he would like to get a better understanding of the final accounts and he has heard that the financial accounts of a business should be prepared in accordance with Generally Accepted Accounting Principles (GAAP) and some accounting concepts. You are required to write a report to Jeffrey explaining the following;
€¢ The difference between Gross Profit and Net Profit (5 marks)
€¢ What the Statement of Financial Position tells us about a business (5 marks)
€¢ The difference between non-current assets and current assets (5 marks)
€¢ The purpose of GAAP (5 marks)
€¢ Prudence Concept (10 marks)
€¢ Going Concern Concept (8 marks)
€¢ Accruals (Matching) Concept (8 marks)
€¢ Objectivity Concept (8 marks)
€¢ Materiality Concept (8 marks)
€¢ Comparability through Consistency Concept (8 marks)
€¢ Separate Determination Concept (5 marks)

5 marks for conclusion, recommendations and suggestions
10 marks will be awarded for report format and style, use of headings,