Accounting for limited companies

5 important questions on Accounting for limited companies

What is a limited company?

A form of business unit that is granted a separate legal existence from that of its owners. Owners are liable for debts only up to the amount they agreed to invest.

What does a limited company has perpetual life means?

That the company will continue to exist, regardless of the life or death of an owner.

Who is responsible for the strategic report?

The directors as well, it is to help shareholders understand how well the directors have performed in promoting the uses of the company.
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What is the statement of comprehensive income?

It extends the conventional income statement to include certain other gains and losses that affect shareholders' equity

What is the statement of changes in equity

It aims to help users to understand the changes in share capital and reserves that took place during the period.

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