All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Ask a Question
AI Study Help New

Search
Sign In
Register

study help
business
accounting and finance for non specialists

Questions and Answers of Accounting And Finance For Non Specialists

Threads Limited manufactures nuts and bolts, which are sold to industrial users. The abbreviated financial statements for 2009 and 2010 are as follows:Dividends were paid on ordinary shares of
Gandhi Ltd renders a promotional service to small retailing businesses. There are three levels of service: the ‘basic’, the ‘standard’ and the ‘comprehensive’. On the basis of past
It is sometimes claimed that the full cost of pursuing some objective represents the longrun break-even selling price. Why is this said and what does it mean?
Distinguish between job costing, process costing, and batch costing.What tend to be the problems specifically associated with each of these?
Pieman Products Ltd makes road trailers to the precise specifications of individual customers.The following are predicted to occur during the forthcoming year, which is about to start:All direct
Newtake Records Ltd owns a small chain of shops selling DVDs and CDs. At the beginning of June the business had an overdraft of £35,000 and the bank had asked for this to be eliminated by the end of
The accountant of your business has recently been taken ill through overwork. In his absence his assistant has prepared some calculations of the profitability of a project, which are to be discussed
What are the benefits to a business of issuing convertible loan notes?
Why might a business that has a Stock Exchange listing revert to being unlisted?
H. Brown (Portsmouth) Ltd produces a range of central heating systems for sale to builders’ merchants. As a result of increasing demand for the business’s products, the directors have decided to
Gainsborough Fashions Ltd operates a small chain of fashion shops. In recent months the business has been under pressure from its suppliers to reduce the average credit period taken from three months
Telford Engineers plc, a medium-sized manufacturer of automobile components, has decided to modernise its factory by introducing a number of robots. These will cost£20 million and will reduce
Hercules Wholesalers Ltd has been particularly concerned with its liquidity position in recent months. The most recent income statement and statement of financial position of the business are as
The managing director of Sparkrite Ltd, a trading business, has just received summary sets of financial statements for last year and this year:Required:(a) Show, by using the data given, how you
Boswell Enterprises Ltd is reviewing its trade credit policy. The business, which sells all of its goods on credit, has estimated that sales revenue for the forthcoming year will be£3 million under
What is the purpose of providing accounting information?
On Thursday, the fourth day of his business venture, Paul, the street trader in wrapping paper, bought more inventories for £53 cash.During the day he sold inventories that had cost £33 for a total
The following is the statement of financial position of WW Associates as at 31 December 2008:During 2009, the following transactions took place:1 The owners withdrew equity in the form of cash of
Evidence tends to show that most businesses are less effective than the best ones in their industry in controlling their working capital. Can you think of some reasons why this might be the case?
In the solution to Activity 12.14, one of the three reasons for holding cash was to exploit opportunities. The example was given of the acquisition of a competitor business. What other types of
How might each of the following affect the level of inventories held by a business?(a) An increase in the number of production bottlenecks experienced by the business.(b) A rise in the business’s
Town Mills Ltd is a wholesale business. Extracts from the business’s most recent financial statements are as follows:Required:(a) Calculate the average operating cash cycle (in days) during the
Assume that Freezeqwik Ltd (Activity 12.16) wishes to reduce its OCC by 30 days. Evaluate each of the options available to this business.Data from Activity 12.16The financial statements of Freezeqwik
The financial statements of Freezeqwik Ltd, a distributor of frozen foods, for the year ended 31 December last year are:
Can you think what these reasons may be? Try to think of at least one.
Can you recall from Chapter 6, a limitation when using this ratio for monitoring trade receivables?
It was mentioned above that although banks are usually prepared to supply references, their contents are not always very informative. Why might this be the case?
In the first bullet point concerning capital, it was mentioned that any major financial commitments should be taken into account. What sort of commitments might a potential business customer have
Superlec plc makes electrical appliances. One of its major component suppliers is Technicalities Ltd. The two businesses have recently established a comprehensive JIT relationship.Would you expect
Assume the same facts as in Activity 12.4, except that the business wishes to maintain buffer inventories of 300 units. At what level should the business reorder?Data from Activity 12.4An electrical
An electrical wholesaler sells a particular type of light switch. The annual demand for the light switch is 10,400 units and the lead time for orders is four weeks. Demand for the light switch is
What kinds of changes in the business environment might lead to a decision to change the level of investment in working capital? Try to identify four possible changes that could affect the working
Gainsborough Fashions Ltd operates a small chain of fashion shops. In recent months the business has been under pressure from its suppliers to reduce the average credit period taken from three months
Surveys (for example, Real World11.13) show that many small businesses use credit cards to help finance their activities. Why might they do this?Data from Real world 11.13Small business fundingThe
The evidence (Real World11.11) shows that more than half of the shares listed on the London Stock Exchange are owned by investors who are based overseas. Why might overseas investors want to buy
Chesterfield Wanderers is a professional football club that has enjoyed considerable success in both national and European competitions in recent years. As a result, the club has accumulated £10
Real World9.3 and Real World9.5 both suggest that the figures that appear in budgets seem not actually to occur. Is this feature a problem in trying to control the various aspects of the business
Compare the sales revenue, raw materials and labour values between the flexed budget and the actual results and reconcile the original budget and the actual profit for Baxter Ltd. Remember that the
Can you see any problems in comparing the various items (sales, direct materials and so on) for the budget and the actual performance of Baxter Ltd in order to draw conclusions as to which aspects
Have a go at preparing the trade payables budget for Vierra Popova Ltd for the six months from July to December (see Activity 9.8).Data from Activity 9.8Have a go at preparing the trade receivables
Have a go at preparing the trade receivables budget for Vierra Popova Ltd for the six months from July to December (see Activity 9.7 and Example9.2).Data from Example 9.2To illustrate some of the
Vierra Popova Ltd (Example9.1) now wishes to prepare its cash budget for the second six months of the year. The budgeted income statements for each month of the second half of the year are as
In a manufacturing business, can you suggest what might drive the cost of:1 Machine testing and calibration; and2 Receiving materials for production?
Taking the same business as in Example8.2, on closer analysis we find that of the overheads that total £20,000 next month, £8,000 relates to machines (depreciation, maintenance, rent of the space
Suppose that Marine Suppliers Ltd (see Activity 4.9) used a machine hour basis of charging overheads to jobs. What would be the cost of the particular job if it was expected to take five machine
Into which category, direct or indirect, would each of the elements of cost listed in Activity 8.4 fall, if we were seeking to find the cost of operating the entire business of Sparky Ltd for a
Activity 7.6 was concerned with the cost of putting a car into a marketable condition. Apart from the quantifiable items mentioned, are there other costs or benefits that are difficult to quantify,
Cottage Industries Ltd (see Example 7.1) has spare capacity as its basket makers have some spare time. An overseas retail chain has offered the business an order for 300 baskets at a price of £13
Ali plc owns a workshop from which it provides an IT repair and maintenance service. There has recently been a downturn in demand for the service. It would be possible for Ali plc to carry on the
In Real World7.3, we saw that Ryanair’s break-even point varied from 72 per cent to 83 per cent over the five-year period. Why was it not the same each year?Data from Real World 7.3BE at
Assume exactly the same circumstances as in Activity 7.4, except that the garage is busy at the moment. If a mechanic undertakes the engine-replacement job, it will mean that other work the mechanic
Touchstone plc’s income statements for the years ended 31 December 2019 and 2020 and statements of financial position as at 31 December 2019 and 2020 are as follows:Statements of financial position
The relevant information from the financial statements of Pluto plc for last year is as follows:
This question requires you to correct some figures on a set of company financial statements. It should prove useful practice for the material that you covered in Chapters2 and 3, as well as helping
Why might the directors of a company engage in creative accounting? Try to think of at least two reasons.
Why do you think Stock Exchange listed companies are required to disclose more information about their business than other companies? Try to think of at least one reason.
A shareholder of the company in Example4.3 owned 100 shares before the bonus issue. How will things change for this shareholder as regards the number of shares owned and the value of the
Can you think why shares might be issued at above their nominal value?
Are reserves amounts of cash? Can you think of a reason why this is an odd question?
Assume that a company has a single owner (shareholder) who dies. What do you think will happen in these circumstances?
Look back to Example3.1 and assume that a trainee accountant had prepared the income statement. Subsequent checking by the chief financial officer revealed the following errors:1. Sales performance
The following information relates to Simonson Engineering as at 30 September 2021:
Refer to the statement of financial position of Brie Manufacturing shown earlier in Example2.4. What would be the effect of revaluing the property to a figure of £110,000 in the statement of
The assets of Kunalun and Co., a large advertising agency, are as follows:Cash at bank;Fixtures and fittings;Office equipment;Motor vehicles;Property;Computers; andWork in progress (that is, partly
Do you think that incomplete financial information, or unverified financial information, should be presented to managers? Why?
Do you think that what is material for one business will also be material for all other businesses?
Ptarmigan Insurance plc (PI) is a large motor insurance business. Taking the user groups identified in Figure1.1, suggest, for each group, the sorts of decisions likely to be made about PI and the
With which of the ideas discussed earlier in the chapter is this accounting treatment of impaired non-current assets consistent?
Why might it be a good idea to have impairment tests carried out by independent experts rather than by the managers of the business?
TT and Co. is a new business that started trading on 1 January 2019. The following is a summary of transactions that occurred during the first year of trading:At the end of the year it was clear that
How will the eventual payment of the outstanding sales commission (Example3.4) and the electricity bill for the last quarter (Example3.5) be dealt with in the accounting records of Domestic
Can you think of other expenses for a retailer that cannot be linked directly to sales revenue and for which matching will therefore be done on a time basis?
What about the statement of cash flows? Is it prepared on an accruals accounting basis?
Andrew Wu (Engineering) Ltd bought a new motor car for its marketing director. The invoice received from the motor car supplier showed the following:What is the total cost of the new car to be
The following is the statement of financial position of WW Associates as at 31 December 2019:During 2020, the following transactions took place:1. The owners withdrew equity in the form of cash of
Sparky Ltd is a business that employs a number of electricians. The business undertakes a range of work for its customers, from replacing fuses to installing complete wiring systems in new houses.In
Cottage Industries Ltd (see Example 7.1) expects to sell 500 baskets a month. The business has the opportunity to rent a basket-making machine. Doing so would increase the total fixed cost of
Assume that the operating profit is £70,000 rather than £50,000. What would be the effect of this on ROSF?
If shareholders gain from the tax-deductibility of interest on borrowings, who loses?
What do you deduce from a comparison of Alexis plc’s gearing ratios over the two years?
In practice, do you think that each piece of accounting information produced will be perfectly complete, neutral and free from error?
Accounting reports are aimed at users with a reasonable knowledge of accounting and business and who are prepared to invest time in studying them. Do you think, however, that accounting reports
Suppose an item of information is capable of being provided. It is relevant to a particular decision and can be faithfully represented. It is also comparable, verifiable, timely and could be
Which do you think is the harder to assess, the economic benefits of accounting information or the costs of producing it?
Why do you think financial accounting reports are subject to regulation, whereas management accounting reports are not?
It can be argued that non-financial measures provided by management accountants, such as those mentioned above, do not, strictly speaking, fall within the scope of accounting information. Thus, they
Can you think of any areas of overlap between the information needs of managers and those of other users?
How should the harmonisation of accounting rules benefit:(a) An international investor?(b) An international business?
Look at Figure 1.5 and state, in broad terms, where an investment in:(a) UK government savings account; and(b) shares in an oil-exploration business should be placed on the risk–return
What other objectives might a business pursue? Try to think of at least two.
On Wednesday, Paul bought more wrapping paper for £460 cash. However, it was raining hard for much of the day and sales were slow. After Paul had sold half of his total inventories for £320, he
What forms might economic benefits take? Try to think of at least two.
Assume a business owns a 20 per cent stake in a gold mine. As this ownership stake will not give control over the whole of the gold mine, can this resource be regarded as an asset of the business?
From time to time, there have been attempts to place a value on the ‘human assets’ of a business in order to derive a figure that can be included on the statement of financial position. Do you
Indicate which of the following items could appear as an asset on the statement of financial position of a business. Explain your reasoning in each case.1. £1,000 owed to the business by a credit
Can you think of two additional items that might appear as assets in the statement of financial position of a typical business?
What would have been the effect on the statement of financial position if the inventories had been sold on 7 March for £1,000 rather than £5,000?
Can you think of two examples of assets that may be classified as non-current assets for an insurance business?
Can you think of one example of a current liability and one of a non-current liability?
Does this pose a problem for external users seeking to assess the business’s financial health?

Showing 1300 - 1400 of 1574

First
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved