Hello, help me in handling the following economics questions. You can refer the following books and articles for solutions: http://www.economist.com/blogs/freeexchange/2008/07/summer_book_club_capitalism_an_4, http://www.investopedia.com/updates/adam-smith-wealth-of-nations/.

Ensure the answer provided is detailed with a clear working of steps and explanations.

3. a) Describe the role and purpose of an internal auditor for a business. (4 marks) D) Neha has drafted the ledger accounts and financial statements at year end for her promotions and marketing business and is pleased that Gross Profit is E74,500 and Net Profit is $14,500. However, on checking the details more closely, she identifies the following: A. Rent from a client of E3,500 for the short-term use of an unwanted outbuilding for storage has been credited to the Land and Buildings account. B. The cost of a colour photocopier for the business, $13,500 including installation costs, has been debited to the Purchases account. C. A bill for E650 for repairing some office equipment has been debited to the Vehicle Expenses account. D. The price of a motor vehicle for business use, namely $7,500, has been debited to the Vehicle Expenses account. E. Carriage in of E80 has been entered to the Postage and Delivery account. F. E18,000 from the sale of the outbuilding has been credited to the Sales Revenue account. TASK for part b) Briefly explain the accounting concern in each of the six situations A to F given above. (6 marks) ii) Ignoring depreciation and other adjustments, and starting with Neha's draft gross and net profit figures, briefly show the effect upon profit of correcting each issue and then give the revised Gross Profit and Net Profit figures after amendments have been made. (6 marks) c) Explain the significance of a 'true and fair view' in relation to the accounts and financial statements of a company or other incorporated business. (4 marks) Total 20 marks4} a] \"1 Describe the major practical differences between a cash budget and other budgets within a business's budgetary oontrol system. {4 marks} The following Inrormatlon relates to wnyzee Limited In 2131? and comes from its various budgets, management decisions, activities and expectations during the year: I: It has agreed to buy new machinery In July for 2DI],I][}I] and a nance arrangement to pay for It in 5 equal monthly lnstalments, the rst due on the date of purchase. o The machinery attmcts a government grant worth 15% of its purchase price, on evidenoe that the machinery instalments are being made on time. This is expected in 3 equal monthly instalments from August. , Rent payable for their premises is 24,D[} per year, payable quarterly in advance. The next payment is due in July. on Purchases of Raw Materials are budgeted to be 1D,[}I]D per month with a variety of payment terms, but averages out as 4:115. is paid in the current month and iii: in Ihe month afterwards. , Either overheads and expenses are budgeted in each month, as follows: Wages of 5,0, payable In the month earned Depreciation of 150 in July, and 45K! In each following month, applied in the relevant month Electricity, Water and Gas usage of 1,350 each month settled monthly Administration costs of 5% of each months' receipts from sales, and paid in the following month. a Cash sales are treated as fully paid at the time of purchase and Whyzee Ltd.'s standard credit term for Its customers is full payment by the end of the following month. The pattern of sales ls expected to be: E May June July August September | October Cash 16,000 18,000 20,000 22,000 Sales 12,000 14,000 Credit Sales 25,000 26,000 27,000 28,000 29,000 30,000 Monthly 37,000 40,000 43,000 46,000 49,000 52,000 Sales The bank balance on 30 June is budgeted to be $25,000 (in funds). An overdraft fee of E20 is charged when any end-of-month bank balance is overdrawn, and any end-of-month positive bank balance (that is, it is not overdrawn) attracts 1% interest. Bank fees and interest, where arising, are applied in the following month. TASK for part b) Using the information given above relating to Whyzee Limited, prepare their cash budget for the four months from July to October 2017. (12 marks) June 2017 7B/PQP/21 Continued C) Based upon the scenario and your cash budget in 4b) above, what conclusions can be drawn and therefore what recommendations can be given to Whyzee Limited? (4 marks) Total 20 marks All calculations should be presented to the nearest whole Ea] Explain the Accmals [or Matd'ilng] Concept in relation to the nancial accounts and statements of a business. (4 mane-.1 b} A. business Information report has been obtained on Lucrative Prospects Ltd, a new sales lead. Your Sales Manager is naturally:I keen that credit terms can be agreed as soon as possible, and is very.r interested to learn what the data In the report means and how It helps with the amount opening decision. TASKS for part b] Explain the usefulness of each of the following ratios in reviewing the performance ofei business: i} Current Ratio (2 marks} ll) Acid Test Ratio [2 marks} iii} Receivables Collection Period {2 marks} iv] Pavables Settlement Period {2 marks] v] Inventorv Turnover Rate [2 marks} c] The following data has been extmcted from the business infom'iation report for Lucrative Prospects Ltd. Analvse the changes for each between 2315 and Zill, showing the potential impact upon Lucrative Prospects Ltd in general and making reference to its management of Its working capital In particular. ['5 marksj \f1. 'The most we can say about the Demand Curve is that it slopes down unless it slopes up.' Discuss. 332 Examination questions and answer notes 333 2. Explain the determination of the optimal price and output combina- tion in a situation of monopolistic competition. Use the resulting equilibrium to illustrate the statement that 'production inefficiency is a necessary price to pay for product variety'. Comment on this statement. 3. Assess the contribution of business games to the study of decision- making processes, illustrating your answer by reference to one business game with which you are familiar. 4. Given that the future is unknown, the best we can do is to estimate the likelihood of future events and then use expected profit as the decision criterion.' Discuss