Reference no: EM132975505

Select a Company listed in the Colombo Stock Exchange in Sri Lanka and use the latest financial statements from the Annual report published by the selected company to answer the following questions.

Question 1: "Accounting is important not only for the Accounting Professionals". Critically explain this statement indicating clearly the main objective of accounting. Explain various parties that use accounting information with their specific purpose of using such information?

Question 2: What is the importance of using accounting policies/principles when preparing financial statements? Select three accounting policies used by the company in the preparation of financial statements from the annual report and explain the importance of those policies.

Question 3: Using the financial statements of the selected company Calculate liquidity, profitability, efficiency and solvency ratios for the recent two years and write a brief report to the board of directors on the status of financial position and financial performance of the company.

Question 4: Critically explain the difference between "Depreciation" and "Impairment" using examples. Explain whether it is necessary to make adjustments for both depreciation and impairment in every accounting period.

Question 5: Why might the revenue and cost figures shown on a standard income statement not be representative of the actual cash inflows and outflows that occurred during a period? Why cash position of an organization is different from its profit?