Question 4

a) "Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analyzing and reporting these transactions to oversight agencies and tax collection entities".

1. Importance of Financial Accounting

1. Scope of Accounting

b) Prepare an Income statement and Balance sheet of Hendry Corp as on 31st Dec, 2019.

Particulars

Amount ($ '000)

Sales

74,872

Cash

9,790

Cost of Goods Sold

53,960

Accounts Payable

14,312

Accounts Receivable

11,428

Selling, General and Administrative Expense

7,248

Inventory

17,034

Research and Development Expense

3,964

Plant and Equipment

14,308

Interest expense

900

Long term Liability

40,210

Land

1,962

Income Tax expense

2,200