AAT Level 4 INAC case studies
AAT Level 4 INAC · Put your knowledge to work in context.
The AAT Level 4 Diploma in Professional Accounting is a professional accounting qualification offered by the Association of Accounting Technicians (AAT), a UK professional body that describes itself as "the leading professional body for accounting technicians" and states that it has been trusted by employers around the world for over 40 years. The qualification sits above the earlier AAT accounting levels and is aimed at people who already have foundational bookkeeping and accounting knowledge and want to move into more senior technical, supervisory or reporting roles, or to progress toward further professional study. The AAT Level 4 INAC case studies are 5 cases and about 2,741 words.
1The Vanishing Petty Cash and the Segregated Duties Problem
You are the newly appointed finance manager at Brightwell Facilities Ltd, a small cleaning contractor with a £2.4m turnover. The company runs a £500 impounded petty cash float, topped up monthly on a fixed imprest basis.
519 words, about 3 min2Contribution Margin Under Constraint: Which Product to Push
Harlow Components Ltd makes three products - Alpha, Beta and Gamma - using a single machine that is the binding constraint. Machine hours available next month are capped at 1,800 hours.
565 words, about 3 min3Reading the Signals: A Ratio Analysis That Tells Two Stories
You are analysing the draft financial statements of Meridian Retail Ltd for the year ended 31 December 20X4, ahead of a bank covenant review. Extracts: 20X4 20X3 --- --- --- Revenue £4,800,000 £4,000,000 Gross profit £1,200,000 £1,120,000 Operating profit £360,000 £400,000 Inventories £720,000 £480,000 Trade receivables £960,000 £600,000 Trade payables £540,000 £500,000 Current assets £1,900,000 £1,300,000 Current liabilities £1,000,000 £750,000 The bank covenant requires a current ratio of at least 1.5 and gearing (debt/equity) no higher than 60%.
592 words, about 3 min4Capital Allowances vs the Annual Investment Allowance: Timing the Claim
You are the tax adviser to Kestrel Engineering Ltd, a UK company with a 31 March year end. In the year ended 31 March 20X5 the company made the following capital purchases: New CNC machine: £180,000 (plant and machinery, main pool) Second-hand delivery van: £22,000 (not a car; main pool) New company car (petrol, 110g/km CO2): £30,000 (special rate pool) Office refurbishment (integral features): £45,000 The company has taxable trading profits before capital allowances of £210,000.
543 words, about 3 min5The Year-End Accrual That Changes the Profit
You are preparing the year-end accounts of Pemberton Trading Ltd for the year ended 31 December 20X4. During the audit you identify the following: 1.
522 words, about 3 min