BUSS1030 REVISION QUESTION

1.Your dentist has decided to use process costing for the month of August. Should you reschedule your 30 August appointment? Discuss

2.Give two examples of an internal control procedure that could be implemented to strengthen internal control over cash.

3.Outline three specific examples where management judgement is involved in recording values for assets, liabilities, or owners' equity accounts.

4.Describe some limitations of the analysis of financial statements. Provide suggested remedies for each of the limitation cited.

5.The junior accountant asks his manager "Why is internal control over cash so critical?" Explain.

6.The statement of financial performance (income statement) is a flow statement and the statement of financial position (balance sheet) is a. Explain three connections between both financial statements.

7."Financial accounting statements reflect past events. Therefore they are not useful in assisting users make decisions as decisions can only be made about future actions."

8.How does the accountant decide whether to classify an interest payment or receipt as an operating activity?

9.Provide a discuss of CVP analysis to illustrate the concept of risk.

10. When do you use average amounts in financial ratio calculations?

11. Why do we bother with break-even analysis? A business is formed to earn profit, not just to not make a loss (e.g. break-even). Discuss.

12.Would you expect the operating profit margin to be higher or lower than the gross profit margin? What's a good operating profit margin?

13.A classification of ratios that you may encounter is "solvency". Where would solvency ratios fit in with the classification system used in this textbook? Which term would be preferred by companies with substantial borrowings and why?

14.The Statement of Financial Position (Balance Sheet) shows the assets, liabilities and owner's equity values at a certain date. It doesn't give any guidance for the future prospects of a firm.Agree or disagree. State your reasons.

15.Your manager states that if they change the depreciation policy on existing plant & equipment by increasing the This can reduce depreciation expense and increase net income by 10%. Advise your manager whether this change is possible with reference to accrual accounting conventions.

16.When asked whether he wanted his pizza cut into ten or twelve pieces the financial accountant replied "Ten pieces please. I couldn't possibly eat twelve". Discuss from an overhead allocation viewpoint.

17.Discuss two key differences between cash and accrual accounting.

18.Explain what useful information readers of financial statements obtain when they review the assets on the balance sheet.

19.Break-even/CVP analysis seems to be a great tool. Does it have any weaknesses?

20.Your car mechanic has decided to use process costing for the month of August. Should you reschedule your 30 August appointment? Discuss.