financial accounting assignment questions and answers

• Introduction to Financial Accounting

(4 reviews)

David Annand, Athabasca University

Henry Dauderis

Copyright Year: 2017

Last Update: 2021

Publisher: Lyryx

Language: English

Formats Available

Conditions of use.

Learn more about reviews.

Reviewed by Katheryn Zielinski, Assistant Professor, Minnesota State University Mankato on 6/14/23

The text reading follows typical financial accounting flow. Beginning with the foundational introduction to what accounting is through the full accounting cycle, while including financial statement analysis towards the end of the book. Students... read more

Comprehensiveness rating: 5 see less

The text reading follows typical financial accounting flow. Beginning with the foundational introduction to what accounting is through the full accounting cycle, while including financial statement analysis towards the end of the book. Students will find the format helpful; the voice is student-friendly. There is online homework help for students. Instructors will find the text format friendly to semester-long class as concepts broken down into 13 chapters. The chapters explain the learning outcomes, use examples to express concepts, with chapter summary at end. The topics included are consistent with intro accounting courses.

Content Accuracy rating: 5

No issues noticed with accuracy. The text includes accurate financial accounting information.

Relevance/Longevity rating: 5

For an introductory accounting class with focus on US the concepts covered are typical.

Clarity rating: 5

The content is presented in a student friendly manner. Answers are provided. The extra information is helpful for students wanting extra practice.

Consistency rating: 5

The format and layout of the book chapters are consistent. All users will quickly understand the format as it is applied the same to each chapter. This helps provide consistency for students learning introductory accounting.

Modularity rating: 5

The content within the chapters can be broken-down and assigned as instructor plans for the course length. The manner is which the material is presented flows easily as reading.

Organization/Structure/Flow rating: 5

The text organization is consistent and coherent. Each chapter is presented in same manner.

Interface rating: 5

No observed tech issues. PDF downloaded and used with ease.

Grammatical Errors rating: 5

No grammar or language issues.

Cultural Relevance rating: 5

No cultural insensitive or offensive context noted.

This is a student friendly text. However, students might find a glossary helpful, as well as an index.

Reviewed by Lawrence Overlan, Part-time Professor, Bunker Hill Community College on 6/4/20

I appreciate how the Statement of Cash Flows has a separate chapter towards the end of the book. Might be better to wait until that chapter instead of also discussing it in Chapter One.....lots of material for opening week.... read more

Comprehensiveness rating: 4 see less

I appreciate how the Statement of Cash Flows has a separate chapter towards the end of the book. Might be better to wait until that chapter instead of also discussing it in Chapter One.....lots of material for opening week....

I sampled several problems...all correct.

Hard to make accounting obsolete. All the required material is present.

Problems are presented clearly and with good font size. Excellent color schemes and graphics.

Yes....no problems detected in this area. Very straightforward.

Chapters contain the right amount of content. Not too long with out breakup diagrams or examples etc.

Standard flow of chapters with excellent subdivisions.

To the contrary, the graphics and flow charts break up the material very nicely.

No issues noticed in this area.

Nice work! I will definitely consider adopting.

Reviewed by Patty Goedl, Associate Professor, University of Cincinnati Clermont College on 3/27/18

The text covers all of the topics normally found in an introductory financial accounting (principles of accounting I) text. The table of contents essentially mirrors the table of contents found in the leading texts in this field. I like that... read more

The text covers all of the topics normally found in an introductory financial accounting (principles of accounting I) text. The table of contents essentially mirrors the table of contents found in the leading texts in this field. I like that this text also covers the classified balance sheet, financial disclosures and partnerships.

Content is error-free, accurate, and unbiased.

Relevance/Longevity rating: 4

The content is up-to-date. Introductory accounting does not change often so future updates should be minimal. The authors used the year 2015 in most of the problem and examples. This might make the text "seem" out-of-date in a few years.

The book is clear and concise. The topics are clearly explained and the technical terminology is appropriate for an introductory level.

The writing, style, and formatting are consistent throughout this text.

The text is divided into topical chapters, which is appropriate considering that the concepts build on each other. The chapters are further subdivided into sub-topics. This makes it easy for an instructor to pick which sub-topics to cover.

Excellent organization and flow. The concepts logically build upon each other and the material is presented in a clear fashion.

The HTML interface is excellent. The book has good graphics, end of chapter content, and even video examples.

I did not notice grammatical errors.

The text is not culturally insensitive or offensive in any way

Excellent book that is comparable to any of the leading financial accounting titles. The authors even provide end of chapter problems, videos, and interactive Excel problems for students. Overall, a great resource! I commend the authors for making something of this caliber freely available.

Reviewed by Margarita Maria Lenk, Associate Professor, Colorado State University on 1/7/16

The content of this textbook matches the content and organization of most introductory financial accounting textbooks. It is written by Canadian authors, but is relevant to US students. The text begins by explaining the role of financial... read more

The content of this textbook matches the content and organization of most introductory financial accounting textbooks. It is written by Canadian authors, but is relevant to US students. The text begins by explaining the role of financial accounting in society, and then describes the underlying structure of double entry accounting systems and the process of recording economic events that impact the value of the organization through the journals and the ledger. The records of these events are then summarized into the primary financial statements. The numeric subtotals and totals on these statements are used to calculate standard financial measures and ratios used to evaluate the organization's performance. The text's organization then proceeds sequentially through the balance sheet accounts, explaining in more detail how the accounting for each category of economic value is recorded and reported. The author's decision to move the most complex content to the end of the book matches how most faculty choose to organize their coverage of these topics.

My reviewed resulted in highest marks regarding accuracy. The only possible concern I would mention here is that the authors use a commonly used technique in chapter two which sometimes leads to students misunderstanding that revenues and expenses are not part of owners' equity until the revenues and expenses are closed at year end to retained earnings. It is my preference to teach introductory students that revenues and expenses are distinct and separate from equity, and then explain that revenues and expenses ultimately get closed to equity. So, this is not an inaccuracy by the authors, just a point that some instructors may want to know before adopting the textbook.

It is my opinion that the content of this textbook will be relevant and current for at least a decade. Any changes made to accounting principles, Canadian or International, will be very easy and straightforward to update.

It is my opinion that the clarity of this text is very high. The authors are succinct and use visuals often to highlight the theoretical structures.

This test is very consistent with the framework that is set up by the authors in the beginning of the text.

The textbook is very clearly divided into separable modules, making it easy for both students to read and for instructors to choose which modules to include in their course.

The content of this textbook matches the content and organization of most introductory financial accounting textbooks. It begins by explaining the role of financial accounting in society, and then describes the underlying structure of double entry accounting systems and the process of recording economic events that impact the value of the organization through the journals and the ledger. The records of these events are then summarized into the primary financial statements. The numeric subtotals and totals on these statements are used to calculate standard financial measures and ratios used to evaluate the organization's performance. The text's organization then proceeds sequentially through the balance sheet accounts, explaining in more detail how the accounting for each category of economic value is recorded and reported. The author's decision to move the most complex content to the end of the book matches how most faculty choose to organize their coverage of these topics.

The online text worked perfectly in my Chrome browser. The end of chapter exercises and problems are perfectly formatted on the screen. All assessment materials (quizzes, exams, etc.) are located on a different site that requires registration to have access.

I found the grammar to be very clear, concise and very effective. Because the book is written by Canadians, expenses are sometimes referred to as revenue expenditures, which does not match how US textbooks refer to expenses, but is perhaps a better learning tool, as the expenses are always recorded in the period in which they match the revenue generation, so I support the authors' choices regarding how they refer to the difference between assets (capital expenditures) and expenses (revenue expenditures).

The textbook adequately refers to the international accounting standards. That is the only cultural relevance which is relevant to introductory financial accounting.

I found this textbook and its exercises to be a useful teaching and learning tool. Instructors and students have access to pre-made PowerPoint slides, exercises and problems, and there is the option to enrol in an online service for online assessments, which seem to have student feedback capabilities in addition to assessment gathering capabilities.

Table of Contents

• The Accounting Process
• Financial Accounting and Adjusting Entries
• The Classified Balance Sheet and Related Disclosures
• Accounting for the Sale of Goods
• Assigning Costs to Merchandise
• Cash and Receivables
• Long-lived Assets
• Debt Financing: Current and Long-term Liabilities
• Equity Financing
• The Statement of Cash Flows
• Financial Statement Analysis
• Proprietorships and Partnerships

Ancillary Material

About the book.

This textbook is an adaptation by Athabasca University of the original text written by D. Annand and H. Dauderis. It is intended for use in entry-level college and university courses in financial accounting. A corporate approach is utilized consistently throughout the book.

The adapted textbook includes multiple ancillary student and instructor resources. Student aids include solutions to all end-of-chapter questions and problems, and randomly-generated spreadsheet problems that cover key concepts of each chapter. These provide unlimited practice and feedback for students. Instructor aids include an exam bank, lecture slides, and a comprehensive end-of-term case assignment. This requires students to prepare 18 different year-end adjusting entries and all four types of financial statements, and to calculate and analyze 16 different financial statement ratios. Unique versions can be created for any number of individual students or groups. Tailored solutions are provided for instructors.

The original Annand/Dauderis version of the textbook including .docx files and ancillary material remains available upon request to D. Annand ([email protected]).

About the Contributors

David Annand, EdD, MBA, CA, is a Professor of Accounting in the Faculty of Business at Athabasca University. His research interests include the educational applications of computer-based instruction and computer mediated communications to distance learning, the effects of online learning on the organization of distance-based universities, and the experiences of instructors in graduate-level computer conferences.

David completed his Doctorate in Education in 1998. His thesis deals with the experiences of instructors in graduate-level computer conferences.

Contribute to this Page

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Financial Accounting in Practice: Practical Questions and Answers for Students

Related Papers

MURITHI MBUGO PETER

Godfrey Mwakalinga

Anup Kumar Saha

Course Objective: This course aims at exposing students of accounting to the theory and practice of management, which has already attained the status of a profession and has been recognized as the fifth factor of production. Teaching method: The traditional one way lecture deliberation method of teaching will be discouraged. Prior study of reading assignments will be a must. Students in a group should distribute discussion topics and reading materials among them to present those in the class. Discussion reasonable arguments and counter arguments will be encouraged. The teacher will play a supervisory role. English will be the medium of communication in the class.

Lawyer Obara

Alina Moloi

james kehinde

The Nigerian banking system had operated perfectly on the manual banking system where the banking activity is done in a single banking hall with much manual recording system and many paper works.

Maxizo Mizotakexi

IAEME PUBLICATION

IAEME Publication

This study is on the title of "an analysis of micro finance institution with respect to loan repayment" in Oromia Credit and Saving Share Company with primary objective of examine the repayment of loans granted to customers on micro level. In this study both primary and secondary source of data have been used and the researcher used open and close questionnaires and structured interview to collect data from the employee, customers and management body of the institutions. Study used convenience non probability technique to select customers and census technique to select target population among employee and management body of Oromia Credit and Saving Share Company. And also the researcher used descriptive method of data analyzing. The analysis of the data revealed that, there is problem in group borrowing methodology, the institution was not collecting its credit on specified period, rather they mostly after the due date and also the repayment period was not suitable. Therefore the institution advised to create awareness to the customer, about the time value of money and to improve the repayment period. An Analysis of Micro Finance Institution (With Respect to Loan Repayment)

RELATED PAPERS

Journal of Turbomachinery

shreyas hegde

Dela Cueva Angelo

farzaneh tafvizi

Protection and Control of Modern Power Systems

ali chebabhi

Granthaalayah Publications and Printers

Shodh Kosh , Dr.Geetali Tilak

The Quarterly Journal of Economics

Agrikan: Jurnal Agribisnis Perikanan

Ibnu Wahab Laitupa

Papeles De Poblacion

Inigo Gonzalez de la Fuente

hamid sharifi

Maria Paula Faillace

Journal of Neuroinflammation

Pratistha Jain

Pro Sciences

MARIO ADRIAN AVALOS LAYANA

Katja Mohorcic

OECD Social, Employment and Migration Working Papers

Leonardo Lugoboni

Marcus Vinicius Tres

Laurena Silva Rodrigues

Ellīniko Periodiko tīs Nosīleutikīs Epistīmīs

Apostolara Paraskevi

Journal of Aging Research

Howard Degenholtz

Produto & Produção

Marcio Fronteli

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

• OnlineExamMaker
• Candidate Management System
• Question Bank Software
• Online Proctoring Software
• AI Question Generator
• Quiz Certification Creator
• Online Survey Maker
• Online Exam Tools
• ELearning Resources
• Learning Management
• Questions & Answers
• Create a Quiz

30 Financial Accounting Quiz Questions and Answers

Financial accounting is a branch of accounting that focuses on the recording, summarizing, and reporting of a company’s financial transactions and activities. Its primary purpose is to provide relevant and reliable financial information to external stakeholders, such as investors, creditors, regulators, and the general public. The information generated through financial accounting helps users make informed decisions about the company’s financial health and performance.

Key features of financial accounting include:

Financial Statements: The core output of financial accounting is the preparation of financial statements, which include the balance sheet (statement of financial position), income statement (profit and loss statement), and cash flow statement. These statements summarize the financial position, results of operations, and cash flows of the business.

Generally Accepted Accounting Principles (GAAP): Financial accounting follows specific accounting principles and standards known as GAAP, which are established by various accounting standard-setting bodies in each country. GAAP ensures consistency, comparability, and transparency in financial reporting.

Accrual Basis of Accounting: Financial accounting generally follows the accrual basis of accounting, which records revenues and expenses when they are earned or incurred, regardless of when the associated cash is received or paid.

Just so you know

With OnlineExamMaker quiz software , anyone can create & share professional online assessments easily.

External Users: The information produced by financial accounting is primarily intended for external users, such as investors, creditors, suppliers, customers, and government agencies, to assess the company’s financial performance and make decisions related to their interactions with the business.

Article outline

Part 1: 30 financial accounting quiz questions & answers.

1. Which financial statement reports a company’s financial position at a specific point in time? a) Income Statement b) Balance Sheet c) Cash Flow Statement d) Statement of Retained Earnings Answer: b) Balance Sheet

2. The process of systematically allocating the cost of tangible assets over their useful lives is called: a) Depreciation b) Amortization c) Impairment d) Depletion Answer: a) Depreciation

3. Which accounting principle requires expenses to be recognized in the same period as the revenues they help generate? a) Materiality b) Consistency c) Matching Principle d) Conservatism Answer: c) Matching Principle

4. Cash and cash equivalents are typically reported under which section of the balance sheet? a) Current Assets b) Long-term Assets c) Current Liabilities d) Long-term Liabilities Answer: a) Current Assets

5. What type of account is “Accounts Receivable”? a) Asset b) Liability c) Equity d) Revenue Answer: a) Asset

6. Which financial statement shows a company’s revenues and expenses over a specific period? a) Balance Sheet b) Income Statement c) Cash Flow Statement d) Statement of Stockholders’ Equity Answer: b) Income Statement

7. The process of transferring journal entries to the ledger accounts is called: a) Posting b) Adjusting c) Balancing d) Closing Answer: a) Posting

8. Which accounting method records revenue when it is earned, and expenses when they are incurred, regardless of cash flow? a) Accrual Basis b) Cash Basis c) Hybrid Basis d) Inflation Basis Answer: a) Accrual Basis

9. A company’s debt-to-equity ratio is calculated by dividing: a) Total Assets by Total Equity b) Total Liabilities by Total Equity c) Total Debt by Total Equity d) Total Revenue by Total Equity Answer: b) Total Liabilities by Total Equity

10. Which financial statement reports the net increase or decrease in a company’s cash during a specific period? a) Balance Sheet b) Income Statement c) Cash Flow Statement d) Statement of Retained Earnings Answer: c) Cash Flow Statement

11. Under which method of inventory accounting are the most recent inventory costs matched with current revenues? a) LIFO (Last-In, First-Out) b) FIFO (First-In, First-Out) c) Average Cost Method d) Specific Identification Method Answer: b) FIFO (First-In, First-Out)

12. Which of the following represents the accounting equation? a) Assets = Liabilities + Equity b) Assets + Liabilities = Equity c) Assets – Liabilities = Equity d) Assets + Equity = Liabilities Answer: a) Assets = Liabilities + Equity

13. What is the purpose of the “trial balance” in financial accounting? a) To prepare financial statements b) To verify the accuracy of debit and credit entries c) To calculate net income d) To record adjusting entries Answer: b) To verify the accuracy of debit and credit entries

14. Which financial statement provides an overview of a company’s changes in equity during a specific period? a) Income Statement b) Balance Sheet c) Cash Flow Statement d) Statement of Retained Earnings Answer: d) Statement of Retained Earnings

15. Which of the following is NOT a type of financial statement? a) Trial Balance b) Balance Sheet c) Income Statement d) Cash Flow Statement Answer: a) Trial Balance

Part 2: Download financial accounting questions & answers for free

Download questions & answers for free

16. The process of allocating the cost of intangible assets over their useful lives is called: a) Depreciation b) Amortization c) Impairment d) Depletion Answer: b) Amortization

17. A company’s ability to pay its short-term obligations is assessed using which financial ratio? a) Debt-to-Equity Ratio b) Current Ratio c) Return on Equity (ROE) d) Gross Profit Margin Answer: b) Current Ratio

18. Which financial statement reports the changes in a company’s retained earnings during a specific period? a) Income Statement b) Balance Sheet c) Cash Flow Statement d) Statement of Retained Earnings Answer: d) Statement of Retained Earnings

19. The process of adjusting journal entries is primarily performed to: a) Correct errors in the financial statements b) Update the financial statements with current data c) Close temporary accounts at the end of the period d) Reconcile bank statements Answer: b) Update the financial statements with current data

20. Which accounting principle states that assets should be recorded at their historical cost rather than their current market value? a) Matching Principle b) Revenue Recognition Principle c) Cost Principle d) Going Concern Assumption Answer: c) Cost Principle

21. When a company sells goods on credit, which accounts are affected? a) Accounts Receivable increases, Sales Revenue increases b) Accounts Payable increases, Sales Revenue increases c) Accounts Receivable increases, Cost of Goods Sold increases d) Accounts Payable increases, Cost of Goods Sold increases Answer: a) Accounts Receivable increases, Sales Revenue increases

22. The accounting equation must always remain in balance because of the principle of: a) Materiality b) Conservatism c) Consistency d) Dual Aspect Concept Answer: d) Dual Aspect Concept

23. Which of the following is NOT considered an intangible asset? a) Patents b) Buildings c) Trademarks d) Goodwill Answer: b) Buildings

24. When a company receives cash in advance from a customer for services to be provided in the future, which account is credited? a) Accounts Receivable b) Cash c) Unearned Revenue d) Revenue Answer: c) Unearned Revenue

25. Which financial statement reports the change in a company’s cash and cash equivalents during a specific period? a) Income Statement b) Balance Sheet c) Statement of Cash Flows d) Statement of Changes in Equity Answer: c) Statement of Cash Flows

You can build engaging online quizzes with our free online quiz maker .

26. The process of formally recording and recognizing a financial transaction in the accounting records is known as: a) Reporting b) Analyzing c) Posting d) Auditing Answer: c) Posting

27. Which financial statement provides information about a company’s revenue and expenses over a specific period? a) Income Statement b) Balance Sheet c) Cash Flow Statement d) Statement of Changes in Equity Answer: a) Income Statement

When recording an adjusting entry for accrued expenses, which accounts are affected? a) Assets increase, Liabilities increase b) Expenses increase, Liabilities increase c) Expenses increase, Equity increases d) Liabilities decrease, Equity increases Answer: b) Expenses increase, Liabilities increase

The primary purpose of the statement of cash flows is to: a) Show the changes in a company’s equity during a period b) Provide information about the company’s cash receipts and payments c) Report the company’s revenues and expenses for a specific period d) Detail the company’s assets, liabilities, and equity at a specific point in time Answer: b) Provide information about the company’s cash receipts and payments

Which financial ratio measures a company’s profitability by comparing net income to its average total assets? a) Return on Equity (ROE) b) Gross Profit Margin c) Return on Assets (ROA) d) Debt-to-Equity Ratio Answer: c) Return on Assets (ROA)

Part 3: Free online quiz creator – OnlineExamMaker

With OnlineExamMaker software, you can easily enhance your assessment procedures, save time on grading, and gain valuable insights into learner performance. OnlineExamMaker grades quizzes automatically, and gives you access to detailed exam reports and statistics instantly. The insightful analytics help teachers and trainers gain valuable insights, enabling them to optimize their teaching methods.

Create Your Next Quiz/Exam with OnlineExamMaker

Related Posts

PHP (Hypertext Preprocessor) is a popular server-side scripting language primarily used for web development. It…

Financial management is the process of planning, organizing, directing, and controlling a company's financial resources…

Financial accounting is a branch of accounting that focuses on the preparation, analysis, and reporting…

Share this post:

Course Resources

Assignments.

The assignments in this course are openly licensed, and are available as-is, or can be modified to suit your students’ needs. Answer keys are available to faculty who adopt Lumen Learning courses with paid support. This approach helps us protect the academic integrity of these materials by ensuring they are shared only with authorized and institution-affiliated faculty and staff.

If you import this course into your learning management system (Blackboard, Canvas, etc.), the assignments will automatically be loaded into the assignment tool.

You can view them below or throughout the course.

• Module 0: Personal Accounting— Assignment: Creating a Budget
• Module 1: The Role of Accounting in Business— Assignment: Lopez Consulting
• Module 2: Accounting Principles— Assignment: Accounting Principles
• Module 3: Recording Business Transactions— Assignment: Recording Business Transactions
• Module 4: Completing the Accounting Cycle— Assignment: Completing the Accounting Cycle
• Module 5: Accounting for Cash— Assignment: Accounting for Cash
• Module 6: Receivables and Revenue— Assignment: Manilow Aging Analysis
• Module 7: Merchandising Operations— Assignment: Merchandising Operations
• Module 8: Inventory Valuation Methods— Assignment: Inventory Valuation Methods
• Module 9: Property, Plant, and Equipment— Assignment: Property, Plant, and Equipment
• Module 10: Other Assets— Assignment: Other Current and Noncurrent Assets
• Module 11: Current Liabilities— Assignment: Calculating Payroll at Kipley Co
• Module 12: Non-Current Liabilities— Assignment: Non-Current Liabilities
• Module 13: Accounting for Corporations— Assignment: Collins Mfg Stockholders’ Equity
• Module 14: Statement of Cash Flows— Assignment: Kachina Sports Company Cash Flows
• Module 15: Financial Statement Analysis— Assignment: Coca Cola FSA

Discussions

The following discussion assignments will also be preloaded (into the discussion-board tool) in your learning management system if you import the course. They can be used as is, modified, or removed. You can view them below or throughout the course.

• Module 0: Personal Accounting— Discussion: Winning the Lottery
• Module 1: The Role of Accounting in Business— Discussion: The Crafty Coffee Crook
• Module 2: Accounting Principles— Discussion: SoftSheets
• Module 3: Recording Business Transactions— Discussion: Baker’s Breakfast Bars
• Module 4: Completing the Accounting Cycle— Discussion: Closing the Books in QuickBooks
• Module 5: Accounting for Cash— Discussion: Counter Culture Cafe
• Module 6: Receivables and Revenue— Discussion: Maximizing Revenue
• Module 7: Merchandising Operations— Discussion: Inventory Controls
• Module 8: Inventory Valuation Methods— Discussion: LIFO, FIFO, Specific Identification, and Weighted Average
• Module 9: Property, Plant, and Equipment— Discussion: Cooking the Books
• Module 10: Other Assets— Discussion: Other Assets
• Module 11: Current Liabilities— Discussion: Current Liabilities
• Module 12: Non-Current Liabilities— Discussion: Off-Balance Sheet Financing
• Module 13: Accounting for Corporations— Discussion: Home Depot
• Module 14: Statement of Cash Flows— Discussion: Facebook, Inc.
• Module 15: Financial Statement Analysis— Discussion: Financial Statement Analysis

Alternative Excel-Based Assignments

For Modules 3–15, additional excel-based assignments are available below.

Module 3: Recording Business Transactions

• Module 3 Excel Assignment A
• Module 3 Excel Assignment B

Module 4: The Accounting Cycle

• Module 4 Excel Assignment A
• Module 4 Excel Assignment B
• Module 4 Excel Assignment C
• Module 4 Excel Assignment D

Module 5: Accounting for Cash

• Module 5 Excel Assignment

Module 6: Receivables and Revenue

• Module 6 Excel Assignment A
• Module 6 Excel Assignment B

Module 7: Merchandising Operations

• Module 7 Excel Assignment

Module 8: Inventory Valuation Methods

• Module 8 Excel Assignment A
• Module 8 Excel Assignment B
• Module 8 Excel Assignment C

Module 9: Property, Plant, and Equipment

• Module 9 Excel Assignment A
• Module 9 Excel Assignment B

Module 10: Other Assets

• Module 10 Excel Assignment

Module 11: Current Liabilities

• Module 11 Excel Assignment

Module 12: Non-Current Liabilities

• Module 12 Excel Assignment A
• Module 12 Excel Assignment B

Module 13: Accounting for Corporations

• Module 13 Excel Assignment A
• Module 13 Excel Assignment B
• Module 13 Excel Assignment C

Module 14: Statement of Cash Flows

• Module 14 Excel Assignment A
• Module 14 Excel Assignment B

Module 15: Financial Statement Analysis

• Module 15 Excel Assignment

Review Problems

There are also three unit review assignments and a final review. These reviews include a document which sets up the problems and an excel worksheet.

Unit 1 Review Problem (After Module 6)

• Review Problem Document

Unit 2 Review Problem (After Module 8)

Unit 3 review problem (after module 9), final review (after module 15).

• Assignments. Authored by : Cindy Moore and Joe Cooke. Provided by : Lumen Learning. License : CC BY: Attribution

StudyMonkey

Your personal ai accounting tutor.

Learn Smarter, Not Harder with Accounting AI

Introducing StudyMonkey, your AI-powered Accounting tutor .

StudyMonkey AI can tutor complex Accounting homework questions, enhance your essay writing and assess your work—all in seconds.

No more long all-nighters

24/7 solutions to Accounting questions you're stumped on and essays you procrastinated on.

No more stress and anxiety

Get all your Accounting assignments done with helpful answers in 10 seconds or less.

No more asking friends for Accounting help

StudyMonkey is your new smart bestie that will never ghost you.

No more staying after school

AI Accounting tutoring is available 24/7, on-demand when you need it most.

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.

AI Tutor for any subject

American college testing (act), anthropology, advanced placement exams (ap exams), arabic language, archaeology, biochemistry, chartered financial analyst (cfa) exam, communications, computer science, certified public accountant (cpa) exam, cultural studies, cyber security, dental admission test (dat), discrete mathematics, earth science, elementary school, entrepreneurship, environmental science, farsi (persian) language, fundamentals of engineering (fe) exam, gender studies, graduate management admission test (gmat), graduate record examination (gre), greek language, hebrew language, high school entrance exam, high school, human geography, human resources, international english language testing system (ielts), information technology, international relations, independent school entrance exam (isee), linear algebra, linguistics, law school admission test (lsat), machine learning, master's degree, medical college admission test (mcat), meteorology, microbiology, middle school, national council licensure examination (nclex), national merit scholarship qualifying test (nmsqt), number theory, organic chemistry, project management professional (pmp), political science, portuguese language, probability, project management, preliminary sat (psat), public policy, public relations, russian language, scholastic assessment test (sat), social sciences, secondary school admission test (ssat), sustainability, swahili language, test of english as a foreign language (toefl), trigonometry, turkish language, united states medical licensing examination (usmle), web development, step-by-step guidance 24/7.

Receive step-by-step guidance & homework help for any homework problem & any subject 24/7

Ask any Accounting question

StudyMonkey supports every subject and every level of education from 1st grade to masters level.

Get an answer

StudyMonkey will give you an answer in seconds—multiple choice questions, short answers, and even an essays are supported!

Review your history

See your past questions and answers so you can review for tests and improve your grades.

It's not cheating...

You're just learning smarter than everyone else

How Can StudyMonkey Help You?

Hear from our happy students.

"The AI tutor is available 24/7, making it a convenient and accessible resource for students who need help with their homework at any time."

"Overall, StudyMonkey is an excellent tool for students looking to improve their understanding of homework topics and boost their academic success."

Upgrade to StudyMonkey Premium!

Why not upgrade to StudyMonkey Premium and get access to all features?

Home » Quizzes » Introduction to financial accounting » Multiple choice questions (MCQs) quiz

Introduction to financial accounting Multiple choice questions (MCQs) quiz

Quiz-summary.

0 of 25 questions completed

Information

About this quiz:.

• Chapter: Introduction to financial accounting
• Quiz Type: Multiple choice questions (MCQs) quiz
• Number of MCQs: 25
• Total Points: 25
• Approximate Time Required: 10 – 15 minutes

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading...

You must sign in or sign up to start the quiz.

You have to finish following quiz, to start this quiz:

0 of 25 questions answered correctly

Time has elapsed

You have reached 0 of 0 points, ( 0 )

• Not categorized 0%

1 . Question

The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as:

• Financial accounting
• Managerial accounting
• Tax accounting
• Forensic accounting

2 . Question

The branch of accounting that generates reports and information for the use of internal management is known as:

• Managerial or management accounting
• International accounting

3 . Question

Which one of the following is not an external user of accounting information?

4 . Question

Which of the following is correct?

• Owner’s Equity = Liabilities + Assets
• Liabilities = Assets + Owner’s Equity
• Assets = Liabilities + Owner’s Equity
• Assets = Owner’s Equity

5 . Question

Who is known as the father of accounting?

• Leonardo da Vinci
• Fra Luca Pacioli
• Al Khawarizmy
• Al Mazendarany

6 . Question

Which of the following is correct about double entry system of accounting?

• Every business transaction brings at least two financial changes in business.
• Financial changes are recorded as debits or credits in two or more accounts.
• Every debit entry has a corresponding credit entry.
• All of the above

7 . Question

The format of account that tells the balance after each entry is known as:

• T-account format
• Advanced account format
• Running balance account format
• None of the above

8 . Question

T-account format is used in situations where account balance is required:

• Periodically
• After each transaction
• At the end of the business

9 . Question

In a T-account, the balance is equal to:

• the total of all debit entries
• the total of all credit entries
• the difference between the total of debit entries and the total of credit entries
• the total of all debit and credit entries

10 . Question

A list of account names used in general ledger of an organization is known as:

• balance sheet
• Income statement
• Account list
• chart of accounts

11 . Question

The type and number of accounts to be listed in a chart of accounts depends on:

• the nature and volume of business
• the need of internal management
• the need of external parties
• all of the above

12 . Question

Which one of the following is not a real account?

• machinery account
• sales account
• goodwill account
• equipment account

13 . Question

Which one of the following is not a nominal account?

• purchases account
• salaries account
• cash account

14 . Question

Which one of the following is a personal account?

• vibrant media's account
• patent account
• loss on sale of equipment account
• plant account

15 . Question

Which one of the following is valuation (or contra) account?

• Accounts receivable account
• Gain on sale of fixed asset account
• Accumulated depreciation account
• Copyright account

16 . Question

Which one of the following is a withdrawal account?

• Cash account
• Dividend account
• Salaries account
• Capital account

17 . Question

Which one of the following is a characteristic of a valid business transaction?

• It is an event measurable in terms of money
• It affects the financial position of the business
• It should be supported by a source document

18 . Question

Which one of the following is an internal transaction?

• Recording salaries expense
• Purchase of goods from supplier
• Recording depreciation
• Purchase of equipment for cash

19 . Question

Which of the following normally have a debit balance?

• Liability accounts
• Equity or capital accounts
• Income or revenue accounts
• Asset accounts

20 . Question

When an asset increases, its account is:

21 . Question

When a liability increases, its account is:

• not changed

22 . Question

An account used to determine the carrying or net value of another account is known as:

• reverse account
• opposite account
• contra account
• realization account

23 . Question

In accounting equation (Assets = Liabilities + Owner’s equity), the liabilities means the claim of external creditors against:

• the profit of the business
• the assets of the business
• the revenue of the business
• the goodwill of the business

24 . Question

Accumulated depreciation account and allowance for doubtful accounts account are two examples of contra asset account. The normal balance of these two accounts would be:

• a credit balance
• a debit balance
• similar to the related normal asset accounts
• nil balance

25 . Question

According to modern approach, the accounts are classified as:

• personal accounts, nominal accounts, real accounts and valuation accounts
• personal accounts, nominal accounts, revenue accounts, and expense accounts
• asset accounts, liability accounts, sales accounts, profit accounts
• asset accounts, liability accounts, capital accounts, withdrawal accounts, revenue accounts, and expense accounts

Very good question

Brainstorming question,I like

Leave a comment Cancel reply

Multiple Choice

Conservatism means that if there is uncertainty in a potential financial estimate, a company should err on the side of caution and report the most conservative amount. For the example, answers will vary. Sample answer: When I am budgeting for revenue in our household, I estimate what amount we will be paid, and I always round slightly down and with the expenses round up slightly so that there is a little leftover.

Assets = Liabilities + Equity; Revenues increase equity, while expenses decrease equity.

The general journal.

Decreasing cash decreases assets; decreasing accounts payable decreases liabilities. Assets (decrease) = Liabilities (decrease) + Equity (no change).

The combined total of liabilities and equity equals the total of assets because there is a claim against every asset that the company owns. Creditors have claims against some of the company’s assets, in the amount of the liabilities owed to them; owners (stockholders) have claims against all the rest of the company’s assets. Equity is the total of assets minus liabilities, which is sometimes referred to as net assets.

The total in accounts receivable will increase with a debit. We know this because accounts receivable is an asset account, and asset balances increase with debit entries.

A journal is a chronological listing of all of the recordable transactions that have occurred in a company.

Recognize means to make a journal entry.

It is a comprehensive listing for all accounts a company has and their balances.

T-accounts represent the changes made to the general ledger. They are used as an illustrative tool when planning or discussing the effects a particular transaction will have on the accounting records. T-accounts are used in academic and business situations, as they are easier to sketch out than general journals.

A prepaid account is an account that shows the balance of money we have paid in advance of an expense being incurred. Prepaid accounts are assets.

A T-account is a visual depiction of the activity in an account. Entries made on the left side of the T-account represent debits, while entries on the right side represent credits. The ending account balance is the total net combined debits and credits for that account.

Asset accounts, dividend accounts, and expense accounts are increased with a debit. (Also, contra-liability accounts, contra-equity accounts, and contra-revenue accounts are increased with a debit.)

Normal balance refers to the expected ending balance for an account, based on the way that the account balance increases (either debit or credit.)

The purpose of the trial balance is to recap the account balances, to ensure that debits equal credits. The trial balance is used to prepare the financial statements, in this order: Income Statement, Retained Earnings Statement, and Balance Sheet.

As an Amazon Associate we earn from qualifying purchases.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution-NonCommercial-ShareAlike License and you must attribute OpenStax.

Access for free at https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters

• Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper
• Publisher/website: OpenStax
• Book title: Principles of Accounting, Volume 1: Financial Accounting
• Publication date: Apr 11, 2019
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters
• Section URL: https://openstax.org/books/principles-financial-accounting/pages/chapter-3

© Dec 13, 2023 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

• Skip to primary navigation
• Skip to main content
• Skip to primary sidebar
• Skip to footer

Study Mumbai

ICSE, CBSE study notes & home schooling, management notes, solved assignments

Financial Accounting: Notes, assignment questions and answers

July 15, 2019 by studymumbai Leave a Comment

Financial accounting involves producing financial statements (Income Statement, Balance Sheet, Statement of Cash Flows) for external stakeholders such as investors, regulators, and creditors.

Accounting can be categorized as financial accounting and management accounting . These are two more common types of accounting. Other types of accounting may include tax accounting, cost accounting, and project accounting, among others.

GET INSTANT HELP FROM EXPERTS!

Hire us as project guide/assistant . Contact us for more information

Financial Ratios

Financial ratios are metrics that are used by investors, creditors, and business owners to assess the financial health of a company. These ratios are calculated from a company’s financial statements, such as the balance sheet, income statement, and cash flow statement.

Various types of financial ratios:

• Profitability ratios (such as gross profit margin and net profit margin)
• Liquidity ratios (such as current ratio and quick ratio)
• Solvency ratios (such as debt-to-equity ratio and interest coverage ratio).

Related: Financial Accounting & Management Accounting

Financial Ratio Analysis for Cement Companies

J. Dyson 2020 Accounting for non-accounting students. 10th Edition Pearson.

P. Atrill, E McLaney 2018 Management Accounting for Decision Makers. 9th Edition Pearson

P. Atrill E McLaney 2020 Financial Management for Decision makers 9th Edition Pearson

Question and Answers

Question: Washco Limited manufacture and distribute washing machines. The board of directors (BoD) have been concerned for some time that their share of the market has been in decline, mainly as a result of industry-wide competition. They are also aware that, to a certain extent, the industry has become the victim of its own success as washing machines have become more reliable and durable and therefore do not need replacing as regularly. Therefore, the BoD are considering making an investment in Meadow Limited.

Meadow Ltd manufactures dishwashers. The BoD believe that the synergistic gains will include advantages over competitors from shared technologies, a greater distribution network, an increase in skilled employees and management and a shared clerical and manufacturing headquarters. The accounts department of Washco Ltd has calculated the following financial ratios for both companies for the years 2021 and 2020.

a) The BoD of Washco Limited have asked you to analyse the position and performance of Meadow Limited in the area of profitability, liquidity, efficiency and long-term solvency.

b) As part of this analysis, the BoD have also asked that you use the information above to compare and contrast the position and performance of Washco Limited with Meadow Limited. They asked you to conclude your analysis by stating, with reasons, whether you feel Washco Limited should make a bid to acquire Meadow Limited.

Q) An investor wants to tests the financial position of Asian Paints Ltd. Thus, he wants to assess the short term liquidity as well as long term solvency. Discuss the four relevant ratio’s which he will definitely look into.

Q. Marry Kom is planning to invest in the share market. She has a profile of risk seeker investor but she believes that before investing it’s important to understand market ratios effectively. Discuss any five market ratios with their importance that Marry Kom should look into before undertaking any investment decision

Q. Look at the balance sheet and the income sheet for Air France-KLM and calculate Financial ratios. http://tools.morningstar.co.uk/uk/stockreport/default.aspx?tab=10&vw=bs&SecurityToken=0P00009WA3%5D3%5D0%5DE0WWE%24%24ALL&Id=0P00009WA3&ClientFund=0&CurrencyId=BAS

Definitions and Importance of Operating Profit Margin and Return on Capital Employed (Compulsorily from text books)

Operating Profit Margin Ratio. Explain for TESCO PLC and Sainsbury PLC

Return On Capital Employed (ROCE) Ratio: Explain for TESCO PLC and Sainsbury PLC)

Industry / Economic Analysis

TESCO PLC Strategy to beat competition

Annual Report of 2020 for both TESCO PLC and SAINSBURY PLC will be the primary source for information.

Analysis: Operating Profit Margin (OPM): Focus on the broad year on change in revenue and operating profit numbers. By what percentage the absolute revenue and profit numbers have increased or decreased. Financial review section in Tesco Annual Report 2020 (Page number 9) would be a good place to start. You can also read through the Chairman and the Chief Executive speeches. Then you go to the ratio and explain why OPM increased or decreased. Understand key segments which are contributing to revenue / operating profit (Product wise segments / geography wise segments). These details could be found on Tesco Annual Report.

Analysis: Return on Capital Employed (ROCE):

Peer Company comparison: Same guidelines can be followed to analyze the OPM and ROCE ratios of Sainsbury PLC. But since it’s a peer company the content can be less as compared to detailing you may do for TESCO PLC ratios.

Incorporating the industry and economic analysis: This will require some additional reading beyond the annual report. You can find out if any major regulations are going to come which may impact the retail sector. Any changes that may impact the cost structure / revenue and ultimately the profitability. It would also be great if you could understand the economic situation of the major markets from where the company is generating the revenue. (UK / Central Europe / Asia etc.). This analysis when linked to the financial numbers of the companies will add a lot of quality to the report.

TESCO Strategy to Beat competition going forward: This will require additional reading (apart from the content given in annual report in the chairman / chief executive / finance head speeches). The thought is to highlight what strategic measures TESCO PLC is taking to beat the competition. These measures may involve decisions across marketing, operations and supply chain, distribution etc.

Question: The net profit before taxes as per the profit and loss account, of Gaman Ltd is Rs 269244. With the given set of information, classify the given items as (operating / investing / financing), share the correct classification with logical reasoning And calculate the cash flow from operating activities.

Loss on sale of asset, 95780 dividend income, 26000 interest income, 35000 finance cost paid on debentures, 12000 gain on sale of investment, 45000 Depreciation on fixed assets, 85000 Amortisation Expenses, 110000

Question: Discuss the steps of performing trend analysis on the financial statements of any company. Download the Balance sheet of any company of your interest from the open sources. Perform the comparative analysis of that Balance sheet and discuss your findings. Hint to attempt: to choose a company from open source- type the name of the company in the web page. Download the annual report as available, latest. Identify the relevant data, and then perform comparative analysis of Balance Sheet of the company.

Question: Mr. Akbar provides you with the following information-(all the transactions are separate and independent of each other)

• Started business with cash Rs150000
• Purchased goods for cash Rs 25000
• Sold goods to C on credit Rs 20000
• Paid salary for cash Rs15000
• Deposited cash into the bank account Rs100000

a. Identify the accounts being affected in the monetary transaction and Identify the type of accounts identified – real, personal or nominal b. Discuss the rule of passing the journal entry applicable here and pass the journal entry (Golden rule or transaction analysis, any of these rule/s can be taken as a base to justify the answer)

Q. Discuss and analyze the following transactions for X Ltd, using the concept of accounting equation (Assets, Liabilities and Equities). 1. Purchased Furniture for Rs675000 2. Capital Introduced by the business Owner by depositing 12 Lakhs in the bank account 3. Goods purchased on credit from Aman Enterprises for Rs105000 4. Goods sold on credit for Rs 400000. The cost of the goods sold was Rs 300000 5. Purchased goods from Sneha Enterprises for Rs 600000 and made the payment from the business’s bank account

Q. Love Doddle is a gifting enterprise of Ms. Dorati. The enterprise generates inflows by arranging gift hampers for the customer’s loved ones. The inflows arises from the sale of gift hampers Rs 505000 and from bank interest, dividend receipt Rs4200. Ms. Dorati is confused on how to record these inflows. She would like to understand from you about the concepts Revenue from operation and other income, so that she can record the information so as to prepare the profit and loss statement of the enterprise. Define, share examples, and elaborate on your understanding towards the terms Revenue from Operation and Other Income.

Q. The following information is given with respect to the ratio’s of two companies (Aman Ltd, Roger Ltd) Current ratio, 2:01, 1.60:1 Quick Ratio, 1.35:1, 1:01 Return on investment, 15%, 13% Debt Equity Ratio, 2.5:1, 1:01

a. Define the concepts of Current and Quick ratio’s and also, reflect on your understanding towards the financial performance of the companies by looking to the above information.

b. Define the terms- Return on Investment and Debt equity ratio and also, reflect on your understanding towards the financial performance of the companies.

Q. Finding financial information. You are required to find the appropriate financial information Hindustan Unilevers Limited financial statements and calculate the following ratios for the financial years 2018-19 and 2019-20: 1. Return on capital employed 2. Return on sales 3. Asset utilization ratio 4. Gross profit margin 5. Current ratio and quick ratio 6. Gearing 7. Interest cover 8. Stock days 9. Current trade receivables days* 10. Current trade payables days* 11. Return on equity. Show all steps needed to calculate your results, including ratio definition and input values.

Q. Further compute the above-mentioned ratios for Procter & Gamble, one of the key competitors of , Hindustan Unilever’s Limited. Conduct a financial analysis of Hindustan Unilevers Limited and P&G using the ratios calculated in Task 1 and describe what you observe about HUL’s performance as well as the performance of its competitor. Explain possible causes for differences in performance and discuss implications for Hindustan Unilevers Limited. In your analysis, you should also discuss whether, according to their financial performance, HUL should be concerned about P&G. Your analysis should not be longer than 2,000 words, excluding bibliography. If you use information that is not included in the financial statements but elsewhere in the company’s annual report (e.g., notes) or in external sources, please cite the exact location and source of this information.

In your answer, you should particularly refer to HUL’s (consolidated) financial statements for the financial year 2020. The notes to these statements will also be relevant. You should be able to answer this question relying on the financial information provided in HUL’s annual reports. This is a real company so you may want to look at the company’s website or those of its competitors, but this is not required. If you make any assumptions, explain them as briefly as you can. Your task is to analyze the financial information about the competitor (P&G.) and comment on it, not to speculate on that organization’s grand market strategy. Before answering this question, review the financial analysis and ratios studied in the module. If that information comes from sources other than HUL’s financial statements, you should provide details of these additional sources and your reasons for using them.

Note: it is suggested that you use current trade receivables and current trade payables to calculate trade receivables days and trade payables days ratios. This TMA is not just testing your ability to calculate the different ratios; it is also assessing your understanding of how to source relevant financial information and make considered decisions about whether and how to deploy it.

Q. Ms. Sandipa is the accounts executive for a company called SS Enterprises. Her job description requires her to supervise the process of recording of the transactions of business and to ensure that all accounting assumptions are taken care of. However, her junior executive is confused about the concepts of the accounting period assumption and the Separate entity assumption. Elaborate how Sandipa can explain the concepts to her junior with the help of suitable example.

Q. The following information is available in relation to Britannia Baby Company. The Company has profit before taxes of Rs 50 lacs. a. Classify and give reasons for the cash flows falling under the operating activities b. Classify and give reasons for the cash flows falling under the investing activities

Particulars Amount Rs in (Lacs) 1. Tangible assets purchased during the year 75 2. Depreciation charged on these tangible assets for the year @ 10% ? 3. Stock sold for the year 95 4. Loan given to Big Boy Company 150 5. Interest received from Big Boy company for the said loan @11.5% ? 6. Shares purchased of a company called as Arvind Mills 10 7. Dividend Received from Arvind Mills 1 8. Taxes paid for the year @ 30% ?

Q) A dealer of Mobile TV has the following items in inventory as on March 31,2018

Item Quantity Cost Price per unit Market price per unit Nokia 50 100000 98000 Samsung 70 88000 90000 Sony 100 120000 115000 Motorola 80 75000 76000

Discuss the accounting standard which talks about inventory valuation. Also, find out and define the overall value of inventories as per the applicable accounting standard.

Q) Define and Discuss the concepts of prepaid expenses and outstanding expenses and their impact on the income statement and Balance Sheet of an Entity? In case of firm A which largely has the balance of prepaid expenses and another firm B which largely has the balance of outstanding expenses, what does this reflects? Discuss

Q. a. A logistics company sold a car of Rs 2.5 lacs. The company had purchased the car three years back for Rs 10 lacs and had depreciated the same using straight line method of depreciation, assuming its useful life to be five years and a residual value of Rs77760. Calculate the WDV after charging depreciation for third year, accumulated depreciation for three years and profit on sale, if any.

b. Consider the following transaction pertaining Ammar’s business-

1. started business with cash Rs 3 lacs 2. Purchased goods for cash Rs 1.2 lacs 3. purchased goods on credit Rs 60000 4. purchased furniture for cash Rs 20000 5. deposited RS 50000 in the bank Perform transaction analysis for each transaction undertaken and present accounting equation for these transactions.

Q) Discuss the components of Other Income under the statement of Profit and Loss accounts of any Indian Corporate. How other income is different from revenue from normal operations under the vertical format.

Q) The following information is provided by a dealer in computer chips. The dealer follows FIFO method for valuing stock, calculate from the following figures –

Date particulars April 1, 2019 – Opening stock 750 chips @Rs1550 per chip

Purchases April 10, 2019 – 1000 chips @Rs1750 per chip April 20, 2019 – 1650 chips @ Rs1875 per chip

Sales April 15, 2019 – 900 chips @Rs3000 per chip April 16, 2019 – 1950 chips @ Rs 3250 per chip

a) Cost of goods available for sale b) Gross profit

Q)From the following information of A star Ltd. prepare the Cash Flow statement for the year ended 2018 as per AS – 3.

Liabilities 31-3-2017 31-3-2018 Assets 31-3-2017 31-3-2018

Equity share capital 2,20,000 2,50,000 machinery 2,00,000 2,30,000 9% Preference Share Capital 1,00,000 1,10,000 Building 1,50,000 1,76,000 Securities Premium 20,000 26,000 Land 18,000 18,000 Profit & Loss A/c 1,04,000 1,34,000 Stock 84,000 98,000 5% Debentures 70,000 64,000 Debtors 38,000 38,000 Creditors 38,000 46,000 Bills Receivable 42,000 62,000 Bills Payable 5,000 4,000 Cash 42,000 32,000 Provision for Tax 10,000 12,000 Dividends payable 7,000 8,000 5,74,000 6,54,000 5,74,000 6,54,000

Q) Balance Sheet for JK Ltd. for the year ended 31st March 2016 & 2017 (10 Marks) Liabilities 2016 2017 Assets 2016 2017 Equity Share Capital 2,00,000 2,00,000 Land 50,000 50,000 9% Preference Share Capital 1,50,000 1,50,000 Building 1,50,000 1,35,000 Reserves 1,00,000 1,22,500 Plant & Machinery 1,50,000 1,35,000 17% Debentures 50,000 75,000 Furniture 50,000 70,000 Creditors 75,000 1,00,000 Stock 1,00,000 1,50,000 Bills Payable 25,000 37,500 Debtors 1,00,000 1,50,000 Tax payable 50,000 75,000 Cash 50,000 70,000 650000 760000 650000 760000

Profit & Loss Account for JK Ltd. for the year ended 31st March 2016 and 2017 Particulars 2016 2017 Particulars 2016 2017 To Cost of goods sold 3,00,000 3,75,000 By Sales 4,00,000 5,00,000 To Operating Expenses Administrative Selling 6,500 10,000 7,250 10,000 To Interest on Debentures 8,500 12,750 To Net Profit 75,000 95,000 4,00,000 5,00,000 4,00,000 5,00,000

Using the tool of commonsize financial statement analysis, comment about the improvement or decline of financial performance of the company.

Q) The following extracts are available from the financial statements of companies V ltd. and J Ltd. for the year ended 31st March 2017: (Rs. In Lakhs)

Particulars V Ltd. J Ltd. Revenue from operations 1,500 6,000 Manufacturing cost 900 4,050 Interest paid 105 375 Depreciation 135 675 Selling expenses 135 225 Income Tax 90 225 Non-operating income 45 285 Dividend paid 120 600 Fixed Assets 1,500 7,350 Current Assets 525 2,250 Current Liabilities 375 2100 Debentures 600 3,300 Reserves 450 1,200 Share Capital 600 3,000

From the above information answer the following questions with the help of suitable ratios:

a) Which company has better solvency using current ratio and share value using earning per share? Which company would you recommend for investment? Justify.

b) Which company has efficiently employed capital using return on capital employed and better operational efficiency using operating profit ratio? Which company would you recommend for investment? Justify.

Q) You visited Subway that’s the fast food restaurant to purchase a Combo worth Rs 499. The restaurant paid for the raw material and utilities amounting Rs105 for each sale. In addition to that, the restaurant also paid for certain expenses in cash in total Rs 50 per sale.

Discuss how these financial transactions will be recorded by way of journal entry, and also, discuss the various stages of the whole accounting process.

Q) The following information pertains to the Income statement of Beta Ltd.

revenue generated from sales 1258000 closing stock 102500 profit on sale of securities 25540 Opening stock 50000 purchase of raw material 500000 direct expenses 150000 manufacturing expenses 67550 administrative expenses 68420 depreciation 15840 preliminary expenses written off 4700 selling and distribution expenses 45000 loss on sale of machinery 15000 interest on loan 46510 Taxes paid 25500 Earnings Before Interest & Taxes (EBIT) ???

a) Redraft the information in the vertical form of Income statement and also, calculate Earnings After Taxes (EAT) b. Calculate the gross profit ratio and operating profit ratio. Discuss, how they differ from each other?

StudyMumbai.com is an educational resource for students, parents, and teachers, with special focus on Mumbai. Our staff includes educators with several years of experience. Our mission is to simplify learning and to provide free education. Read more about us .

Related Posts:

• Management Accounting: Notes, assignment questions…
• Financial Management: Notes, Questions
• Dentistry: Notes, Case Studies, Questions and Answers
• ICSE Class-5 Maths: Revision notes, questions and answers
• 'The boy who never told a lie' poem: Notes,…

Reader Interactions

Leave a reply cancel reply.

You must be logged in to post a comment.

ICSE CLASS NOTES

• ICSE Class 10 . ICSE Class 9
• ICSE Class 8 . ICSE Class 7
• ICSE Class 6 . ICSE Class 5
• ICSE Class 4 . ICSE Class 2
• ICSE Class 2 . ICSE Class 1

ACADEMIC HELP

• Essay Writing
• Assignment Writing
• Dissertation Writing
• Thesis Writing
• Homework Help for Parents
• M.Com Project
• BMM Projects
• Engineering Writing
• Capstone Projects
• BBA Projects
• MBA Projects / Assignments
• Writing Services
• Book Review
• Ghost Writing
• Make Resume/CV
• Create Website
• Digital Marketing

STUDY GUIDES

Useful links.

• Referencing Guides
• Best Academic Websites
• FREE Public Domain Books

• Forums New posts Search Forums
• Members Registered members Current visitors Recent Activity
• Free Assessment

Study Material for 2024 WAEC Financial Accounting (OBJ, ESSAY/THEORY) Questions and Answers Available

• Thread starter babattst
• Start date Yesterday at 3:10 AM

Get Study Material for 2024 WASSCE for School Candidates Financial Accounting answers : Get Verified study guide 2024 WAEC May/June Financial Accounting (Objective, Essay/Theory) OBJ & Theory Questions and Answers for WASSCE for School Candidates material study. | Download study material for WAEC May/June Financial Accounting Questions and Answers (21 May, 2024). Tuesday, 21th May 2024 Financial Accounting 2 (Essay/Theory) 9:30am – 12:00am Financial Accounting 1 (Objective) 12:00am – 1:00pm STUDY MATERIAL for 2024 WAEC FINANCIAL ACCOUNTING 2 (ESSAY/THEORY) ANSWERS: Loading................................................... STUDY MATERIAL FOR 2024 WAEC FINANCIAL ACCOUNTING 2 (ESSAY/THEORY) ANSWERS DOWNLOAD PDF MATERIAL STUDY FOR 2024 WAEC FINANCIAL ACCOUNTING 1 (OBJECTIVE) ANSWER PDF ====================== CLICK HERE TO GET FULL STUDY MATERIAL ANSWERS