Acct 1501 Pratice Exam Questions
ACCT1501 Practice Exam Questions
2014S1
QUESTION 1 (8 Marks) Financial Reporting Principles, Accounting Standards and Auditing, & Sustainability Reporting Provide short answers to the following: 1. What are generally accepted accounting principles? (2 Marks)
2. If you have a good idea and expect to make a lot of money from the idea is that a sufficient reason to recognise an asset? Explain why or why not. (2 Marks)
1
ACCT1501 Practice Exam Questions
2014S1
3. How can financial information be relevant to the users of financial reports? (2 Marks)
4. What is meant by sustainability reporting? (2 Marks)
2
ACCT1501 Practice Exam Questions
2014S1
QUESTION 2 Financial Statement Analysis (8 marks) BPS Ltd, a supplier of telecommunications equipment, retails its products through suburban outlets. Shown below are the calculations of some of its key financial ratios for 2011 and 2012. 2012 2011 Return on Equity 13% 12% Return on Assets 8% 9% Profit margin 20% 18% Asset turnover 0.40 0.50 Days in inventory 72 days 55 days Days in debtors 42 days 42 days Current ratio 1.6 1.5 Quick ratio 0.7 1.1 Debt-to-Equity ratio 1.4 1.0
Return on Equity Operating Profit after Tax Shareholders ' Equity Operating Profit after Tax Total Assets Total Assets Total Shareholders’ Equity Earnings Before Interest and Tax Sales Sales Total Assets Average Inventory x 365 COGS Average Trade Debtors x 365 Credit Sales Current Assets Current Liabilities Current Assets - Inventory Current Liabilities Total Liabilities Total Shareholders ' Equity
Return on Assets
Financial Leverage
Profit Margin
Asset Turnover
Days in Inventory
Days in Debtors
Current Ratio
Quick Ratio
Debt to Equity Ratio
3
ACCT1501 Practice Exam Questions
2014S1
Required Analyse BPS’s profitability, asset management, liquidity and financial structure for 2012 using the ratio information shown above.
4
ACCT1501 Practice Exam Questions
2014S1
2014S1
QUESTION 1 (8 Marks) Financial Reporting Principles, Accounting Standards and Auditing, & Sustainability Reporting Provide short answers to the following: 1. What are generally accepted accounting principles? (2 Marks)
2. If you have a good idea and expect to make a lot of money from the idea is that a sufficient reason to recognise an asset? Explain why or why not. (2 Marks)
1
ACCT1501 Practice Exam Questions
2014S1
3. How can financial information be relevant to the users of financial reports? (2 Marks)
4. What is meant by sustainability reporting? (2 Marks)
2
ACCT1501 Practice Exam Questions
2014S1
QUESTION 2 Financial Statement Analysis (8 marks) BPS Ltd, a supplier of telecommunications equipment, retails its products through suburban outlets. Shown below are the calculations of some of its key financial ratios for 2011 and 2012. 2012 2011 Return on Equity 13% 12% Return on Assets 8% 9% Profit margin 20% 18% Asset turnover 0.40 0.50 Days in inventory 72 days 55 days Days in debtors 42 days 42 days Current ratio 1.6 1.5 Quick ratio 0.7 1.1 Debt-to-Equity ratio 1.4 1.0
Return on Equity Operating Profit after Tax Shareholders ' Equity Operating Profit after Tax Total Assets Total Assets Total Shareholders’ Equity Earnings Before Interest and Tax Sales Sales Total Assets Average Inventory x 365 COGS Average Trade Debtors x 365 Credit Sales Current Assets Current Liabilities Current Assets - Inventory Current Liabilities Total Liabilities Total Shareholders ' Equity
Return on Assets
Financial Leverage
Profit Margin
Asset Turnover
Days in Inventory
Days in Debtors
Current Ratio
Quick Ratio
Debt to Equity Ratio
3
ACCT1501 Practice Exam Questions
2014S1
Required Analyse BPS’s profitability, asset management, liquidity and financial structure for 2012 using the ratio information shown above.
4
ACCT1501 Practice Exam Questions
2014S1