What are accounting standards?
What are the three most important ethical principles that you feel organizations should adhere to in terms of their staffing philosophies? Why?
August 5, 2017Do you think that public administrators should be restricted to only laid down rules in the discharge of their duties as espoused by Max Weber or should they have some amount of discretion.
August 5, 2017Read the Success on the OAES document for full instructions about how to use this system.
Assigned questions for Module 2 are:
Q6-1: What are accounting standards?
Q6-2: Summarize the IASBs Framework for the Preparation and Presentation of Financial Statements.
Q6-3: A business has the following balances in its financial records: Income tax £30,000; Selling & administration expenses £80,000; Revenue £350,000; Interest expenses £15,000; Cost of Sales £190,000. How much is the Gross profit, Operating profit, and the Net Profit after tax?
Q6-4: What are some ways you can express the accounting equation?
Q6-5: The following items appear in a Statement of Financial Position: Receivables 200,000; Payables 350,000; Inventory 100,000; Non-current assets 750,000; Long-term loan 400,000. What is the balance of Shareholders funds (SH Equity)?
Q6-6: ABC buys a smaller company XYZ for a negotiated price of £1 million. XYZs assets are valued at £750,000. Assuming goodwill is amortized over 5 years, what is the value of goodwill in ABCs Statement of Financial Position at the end of the third year after acquisition?
Q6-7: What is Agency theory and what is it primarily concerned with?
Q7-1: What is the difference between ROI and ROCE ratios?
Q7-2: Use the following information extracted from ABCs Income Statement and Balance sheet to determine ABCs Days Sales Outstanding, Inventory Turn, and Payables Days Outstanding:
Sales £4,200,000; Gross profit £2,700,000; Receivables £630,000; Payables £275,000; Inventory £300,000. ABC calculates its financial ratios based on being open for business 6 days per week for 50 weeks per year.
Q7-3: A company has capital employed of 1,000,000 and generates a profit after tax of 300,000. Assume the company has a balance sheet with 60% debt. What is the ROI? Now assume the company has a balance sheet with 40% debt. What is the ROI?
Q7-4: A business has current assets of $35,000 and current liabilities of $20,000. It collects its receivables more quickly and uses $10,000 of its cash at bank to repay a long-term debt. What is the effect on the working capital ratio after the long-term debt is repaid?
Q8-1: How is inventory valued in the Balance Sheet (Statement of Financial Position)?
Q8-2: In a manufacturing business, when the company has completed production on inventory it wishes to sale, explain flow of costs for affected inventory accounts.
Q8-3: A business purchases inventory stock on four separate occasions. Purchased 3,500 units at a total cost of 8,050; Purchased 3,000 units at a total cost of 7,110; Purchased 4,000 units at a total cost of 9,600; and Sold 5,995 units at a total price of 24,760. Each purchase was completed in the order provided within the same period. Match the inventory method with the correct cost of sales and the correct value of inventory.
