CHOOSE A TRADING/MANUFACTURING COMPANY LISTED ON ANY STOCK MARKET. WITH RESPECT TO YOUR CHOSEN COMPANY, ANSWER THE FOLLOWING QUESTIONS.

Question 1 [CLO 5] (8 Marks)

(a) Explain the purpose and usefulness of the financial statements prepared by the company. (2 Marks)

(b) Identify the rule/principles applied by the company in preparation of financial statements. Also give reason for applying such rules/principles. (4 Marks)

(c) Being one of the integral components of financial statements, balance sheet shows the overall financial position of the company. Therefore, examining total assets and total liabilities for 2015, 2016 and 2017, comment on the financial position of the selected company. (2 Marks)

Question 2 [CLO 5] (7 Marks)

(a) Calculate account receivable turnover ratio for the company and also comment on the collection policy of the company for 2015, 2016 and 2017. (4 Marks)

(b) Bank reconciliation is considered as a basic element of cash control. Specifically with respect to the selected company, identify the items that cause the cash balance per bank and the cash balance per book to differ. (3 Marks)

Question 3 (a)

(b) (c)

(d)

[CLO 5] (10 Marks)

Inventory can be in the form of raw material, work-in-progress and finished goods. Which of these type/types of inventory/inventories is/are held by your selected company? and Why? Explain. (3 Marks)

Calculate the inventory turnover ratio for 2015, 2016 and 2017 and comment on the inventory management. (3 Marks)

Which of the following inventory management system is applied by the company? and Why? Discuss. ( 2 Marks)

Periodic Inventory Management System Perpetual Inventory Management System

Which of the following inventory valuation method is applied by the company? and Why? Appraise. (2 Marks)

Last in First Out Method (LIFO) First in First Out Method (FIFO)

Average Methods

2

Questi Marium Mark Marka Awarded CLO ! 2 7 5 3 10 5 Total Marks: ALDAR UNIVERSITY COLLEGE ASSIGNMENT QUESTIONS CHOOSE A TRADING/MANUFACTURING COMPANY USTED ON ANY STOCK MARKET. WITH RESPECT TO YOUR CHOSEN COMPANY, ANSWER THE FOLLOWING QUESTIONS Question 1 CLOS (8 Marks (a) Explain the purpose and eness of the financial statements prepared by the company. Mata) b) Senty the represalied by the company is preparation of frances 1) Belo one of the integral components of financial statements, Dalance sheet shows the sabilities for 2015, 2016 and 2017, comment on the financial position of the selected company (2 Marks) Question 2 ICLOS (Mars) (a) Calculate account receivable turnover ratio for the company and also comment on collection policy of the company for 2015, 2016 and 2017. (4 Maris) b) Bank reconciation is considered as a basic element of cash control Specifically respect to the selected company. Identify the terms that cause the cash balance perbank and the cash balance per book to her (Marks) Question 3 CLOS (40 Marks) Inventory can be in the form of raw material work in progress and finished goods Which of these type/types of inventory Inventories are held by your selected company and why? Explan (3 Maris) Calculate the inventory tumower ratio for 2015, 2016 and 2017 and comment on the Inventory management Marks) (c) Which of the following Inventory management system is led by the company? and Why? Discuss (2 Marka) Periodic Inventory Management System Perpetual Inventory Management Siem (d) Which of the following inventory valuation method is led by the company and Why? Appr. 12 Marts) Lastin Frst Out Method (LIFO) Fest in First Out Method Ffoj Average Methods 2