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
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
financial accounting an introduction

Questions and Answers of Financial Accounting An Introduction

A firm is considering the sale of product Z produced two months ago. The accountant has drawn up the following statement:Forecast profit statement for sale of product Z Sales revenue 100 units @ £2
The Kongo Company estimates the following relationships between price, total costs and quantities of sales and output for production:Quantity Total revenue Price Total costs 000 £000 £ £000 0 40
What do you understand by the following terminology?Fixed cost Demand function Contribution Variable cost Cost function Full-cost pricing Regression analysis Profit-volume chart Relevant cost
'Deprival value, opportunity cost and relevant cost are synonymous concepts'.Discuss.
How can a knowledge of statistical probability be used in forecasting?
What is the point of distinguishing between strategic and operating decisions?
Firms are often said to have a vector of objectives. Explain what this means. What are the problems in implementing a vector of objectives?
What do you understand by the following terminology?Planning Budgeting Opportunity cost Control Cost-benefit analysis Feedback Strategic decisions Search methods Relevant costs Operating decisions
Share prices often fluctuate daily. Is it possible to justify the use of share prices to value a firm?
Shown below are the summarised balance sheets of the Imperial Co. and the Iota Co.at 31 December 19X 1 :Imperial Co. Iota Co.£OOOs £OOOs Fixed assets 140 110 Net current assets 220 30 360 140
Shown below is the balance sheet of the Ironside Co. at 31 December 19X 1 after its first year of operation as a producer of aero-engines. The columns A and B represent alternative balance-sheet
What are the advantages and disadvantages of the use of original cost as a measure of value and profit?
What would be the most appropriate procedures for valuing the following as individual assets?(a) a monopoly(b) good customer relationships(c) efficient management(d) harmonious industrial relations
What do you understand by the following terminology?Accounting concepts Goodwill Accounting bases Accounting goodwill Accounting policies Synergy Takeover Valuation model Cost of finance Normal return
A firm commences business on I January 19XO by purchasing a car for £1000 and inventory for £200 using the initial capital of £1200. On the 30 June 19XO it sells half the inventory for £300 cash.
lfboth taxation and dividends are paid out of the conventional accounting profit what problems does this raise in times of price-level changes?
A firm has £ 1000 in its bank account during March 19XO. It has no transactions affecting the bank account in this month. During the month the index of retail prices rose from 100 to 105, but the
Why is it that price-level changes affect the ability to meaningfully compare the financial statements of one company with another?
If financial statements used replacement cost as the basis of value rather than original cost would there be any need to consider other price-level changes when reporting to owners and managers?
Price-level changes tend to reduce the usefulness of financial statements prepared on the basis of original cost transactions. Discuss.
What problems would arise in trying to construct a price-level index for the following:(a) an individual's consumption(b) cars(c) a firm's expenditure pattern.
Discuss whether the effect of price-level changes on value and profit of a firm would be of interest to:(a) creditors(b) trade unions(c) customers(d) government
What do you understand by the following terminology?General price-level changes Unrealised holding gain Specific price-level changes Realised holding gain Inflation Monetary assets and liabilities
At a meeting to discuss the liquidity problems of a firm, the following proposals are made:(a) an increase in the depreciation expense to conserve more cash in the firm.(b) a reduction in the credit
If you are considering investing £ 10,000 what criteria would you use in choosing between an investment in ordinary shares, preference shares and debentures?
The following are the balance sheet and profit statement of Geranium Ltd:Balance sheet at) 1 December 19X1 19X2 Fixed Assets £000 £000 Machinery at cost 52 60 Less." Accumulated Depreciation 20 15
When analysing the accounts of Gen Ltd you discover that the following information has not been considered:(a) only 90% of the debtors included in the balance sheet at £25,000 are expected to pay
The market value of the ordinary shares of Gallic Ltd is £80,000. The shareholders expect to receive £ 10,000 per year in dividends in the future. What discount rate are the shareholders applying
How would you calculate your personal opportunity cost of finance if you are deciding whether to buy:(a) a sweepstake ticket for an event in one year's time(b) a season ticket on British Railways(c)
Gault Ltd obtains the following finance during 1974: (a) borrows £ 1000 to be repaid in two years time with annual interest of 10%;123 (b) borrows £5000 with £5832 to be repaid in two years time,
What do you understand by the following terminology?Financial structure Equity finance Capital structure Debt finance Share premium Bonus issue Nominal value Floating and fixed charges Deferred
The estimated production data of the Fitful Co. Ltd for April are as follows:Direct materials £ 1200 Direct labour £2400 Factory overhead £1600 Labour hours 4000 Machine hours 3200 Required:(1)
What problems would be met in assessing the physical quantities of inventory and calculating an appropriate valuation for the following firms:(a) a general store(b) a diamond dealer(c) an oil
When valuing inventory why is market value considered iflower than original cost and ignored if higher?
A firm commences business on 1 January 19XO. It buys and sells silver pots. The following information is available about its purchases and sales in 19XO:Purchases Sales£ £1/l/XO 100 units at£3.00
Discuss possible interpretations of the phrase 'the original cost of inventory'.
Why might it be difficult to determine the value of work in progress?
Why should there be a difference between the selling price and replacement cost of inventory? Is the future utility measure of value always the same as the selling price measure of value in the case
What is the point of distinguishing between direct and indirect costs when considering the costs of production?
What do you understand by the following terminology?Inventory Costing Raw materials Work in progress Finished goods Allocation and apportionment of costs N ormallevel of activity] ob-costing system
Given the general nature of our introductory chapter, this case has a range of objectives:1. To get you thinking about the way in which you make decisions that involve the use of resources.2. To
1. You are enrolled on a program of studies for a reason, which involves you in a cost. Why did you choose the particular institution and program?
2. How important was the cost in your decision-making?
3. Do you have a clear idea as to how the cost is to be covered?
4. Do you need to get a job to partially fund the program?
5. Do you have an expectation of future benefits arising from studying and completing this program?
6. How many of these benefits are you able to quantify? How confident are you about these figures? What assumptions are you making? What judgements are involved?
1. Have you considered starting a business? If so, what kind of business is it? What kind of information would you seek before commencing?
2. Who might you want to work with, and in what capacity?Why?
3. How important is making money to you? Is wealth enhancement likely to be the principal objective ofa) you and your business, orb) most commercial undertakings? If your answer to either of these is
4. If you are managing a business, or running your own business, what assumptions will you make regarding the objectives of your staff, your suppliers and your customers?How might these assumptions
1. What do you think might be the implications of big data and analytics to the way businesses are run?
2. What do you think are the implications of social media for business?
3. How important is ethics to you?
4. How do you feel about the idea, discussed in Real World 1.1 , that ‘it was legal, and others were making money that way’?
5. In recent months the idea of a ‘social licence to operate’ has been mooted, at least so far as large corporations quoted on the stock exchange are concerned. Do you think that this is a
6. In 2019 Maurice Newman wrote a piece in The Australian entitled ‘Anti-capitalists winning as corporate cringe takes hold’. The article focuses on the poor press often given to business, and
1. How important is teamwork and good communication in decision-making? Do you see any particular issues that might arise with the people identified in B(2), above, relating to possible business team
2. How comfortable are you likely to be in a team where expertise in a particular area (say accounting or IT), or knowledge of a particular area, is held by only one team member?
3. How important is the ability to give and take advice and criticism in a business career?
4. How good a team player are you?
1. Casual observation suggests that the life span of many cafés or similar businesses is very short. Yet many are run by very good cooks and make good coffee. Suggest why this phenomenon might occur.
2. The assumption (frequently made) that if you understand the technical work of a business, you understand a business that does that technical work is patently false. Think back to your answer to
3. What role do you think that accounting has in setting prices for a business? What is likely to be the impact on profits of cutting prices to meet the competition?
4. Explain the difference between profit and cash.
5. Why might you choose to use an accountant to maintain a sound system of financial reporting if you were to run a small business?
6. Assume that you are planning to sell a product for $10 that costs $6. At that price you expect to be able to sell 1,000 units. You are being pressed by your marketing staff to discount the price
7. Many of the early days of a business are likely to be a rollercoaster of a ride. Why should the early days be in the nature of a roller-coaster? How might you lessen the likelihood of this?8. What
1. Why do you think investors would purchase shares of digital firms that make losses?
2. Do you agree that financial statements for digital companies are less relevant to stakeholders’ decision-making? If so, why?
3. Why do you think the intangible investments in digital firms(e.g. Facebook) increase their value when more people use them?
4. Why do the current accounting standards not allow items such as brands, organisational strategy, peer and supplier networks, customer and social relationships, and human capital to be recognised
5. What might be the problems if these items were allowed to be recognised in the balance sheet? What solutions can you offer?
However, the buildings are not owned, but leased. The current lease expires in three years, but there are options for at least two further five-year terms in place. The current lease costs $50,000
1. Advise Paul on whether or not he should proceed with the purchase.
2. Advise Paul as to whether the price is appropriate.
3. Explain why not separating the figures into those relating to personal or business aspects may cause problems for decision-making.
4. Attempt to summarise the above information in such a way as to calculate a profit figure for the business.
5. Summarise the aspects of the decision that relate to Paul’s artistic leanings.
6. What other factors might be worth considering by Paul in reaching a final decision?
1. What do you understand by the term ‘cash and cash equivalents’ in the consolidated statement of financial position(balance sheet)?
2. What is the basis of valuation of ‘trade and other receivables and contract assets’ and ‘inventories’ for 2019?
3. What do you think are likely to be the main components in the figure for ‘property, plant and equipment’ in the statement of financial position (balance sheet)?
4. What do you understand by ‘fair value’?
5. What items do you think might be covered under the heading‘intangible assets’ in the statement of financial position(balance sheet)? How do you think the various items might be valued and
6. What items are likely to be covered under the heading‘borrowings’? How might these borrowings be secured?
7. The main ‘provisions’ in the current liabilities are made up of‘employee benefits’ and ‘other provisions’. Those in the noncurrent liabilities include the same items. Can you suggest
8. Explain the equity section of the statement of financial position (balance sheet).
9. What is the relationship between the ‘profit for the year’ in the statement of financial performance (incomes statement) and‘total equity’ in the statement of financial position (balance
1. Do you think that the regulatory framework discussed in this chapter provides an adequate foundation for management and oversight?
2. How might a company strive to safeguard the integrity of its financial reporting?
3. What is the role and effectiveness of the auditor?
4. Is the division of corporate governance between conformance and performance useful?
5. The discussion paper summarised above identifies processes and structures as a key part of governance. List the range of processes and structures mentioned in the ASX Corporate Governance
6. The discussion paper talks about the importance of people and behaviours on board effectiveness.a. What do you think is meant by ‘board culture’?b. Do you think it is important that board
7. With regard to frameworks, processes and structures, answer the following.a. What kind of risks might a company face? You may find it easier to think of a particular business and think about the
Your friend Tim, who was introduced in Reflection 6.2 , has asked for your assistance, as he knows that you are doing a business course. A new industrial estate has been set up in the area (which is
1. Why do you think 68% of respondents felt that the outcome from the Royal Commission would be good for ordinary Australians?
2. Do you think there is a corporate governance failure in the wake of the banking and financial services industry scandal?
3. Can you still trust banks for financial services after the breakout of the scandal?

Showing 1500 - 1600 of 4891

First
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Last

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