You have been asked by the Managing Director of Allwhite Ltd to prepare a report for the next meeting of the Board of Directors.

This report is to deal with the following factors:

a) In the preparation of financial statements certain adjustments can be required. Outline with worked examples the nature and purpose of these adjustments.

b) The importance of budgets and budgeting to a modern well run business paying particular attention to developments in budgeting i.e. rolling budgets, ZBB etc

c) The manner in which the accounts of limited companies and sole traders differ in respect of such issues as taxation, directors remuneration, profit and loss appropriation account etc. and your understanding of limited liability

d) Outline the aims and objectives of bank reconciliations and how they are prepared.