Business Accounting
May 14, 2012
[
EXECUTIVE
DIPLOMA]
EXECUTIVE DIPLOMA IN BUSINESS MANAGEMENT
Awarded by the Asia e University
Assignment
[Business Accounting]
Submission due date : 23rd June 2012 by or before 5.30pm
1
May 14, 2012
[
EXECUTIVE
DIPLOMA]
Assignment Question
Scenario You have been recruited to help your uncle’s family to set up and run a supermarket called ‘BeliMurah Mart’ in Petaling Jaya. In the past, they had set up and managed smaller scale businesses, but have mixed up their finances that resulted in some losses. Since you have the knowledge of accounting, they would like to seek your guidance to understand some financial aspects that will help them build the new business into a successful venture.
Task 1 Prepare a short report (400 words) for your uncle and aunt explaining the purpose of accounting. Explain why it is important to record transactions and how it should be recorded. You may make reference to the accounting standards, if necessary. (10 Marks)
Task 2 Write a note to your uncle explaining the differences between capital and revenue items of expenditure and income. Use examples related to a supermarket so that your uncle and aunt will understand better. (10 Marks)
2
May 14, 2012
[
EXECUTIVE
DIPLOMA]
Task 3
Business A and B are both engaged in retailing, but seem to take a different approach to this trade according to the information available. This information consists of a table of ratios, show below: Ratio Current ratio Quick assets (acid test) ratio Return on capital employed (ROCE) Return on shareholders’ funds (ROSF) Accounts receivable turnover Accounts payable turnover Gross profit percentage Net profit percentage Inventory turnover Business A 2:1 1.7 : 1 20% 30% 63 days 50 days 40% 10% 52 days Business B 1.5 : 1 0.7 : 1 17% 18% 21 days 45 days 15% 10% 25 days
Required: (a) Explain briefly how each ratio is calculated. (b) Describe what this information indicates about the
[
EXECUTIVE
DIPLOMA]
EXECUTIVE DIPLOMA IN BUSINESS MANAGEMENT
Awarded by the Asia e University
Assignment
[Business Accounting]
Submission due date : 23rd June 2012 by or before 5.30pm
1
May 14, 2012
[
EXECUTIVE
DIPLOMA]
Assignment Question
Scenario You have been recruited to help your uncle’s family to set up and run a supermarket called ‘BeliMurah Mart’ in Petaling Jaya. In the past, they had set up and managed smaller scale businesses, but have mixed up their finances that resulted in some losses. Since you have the knowledge of accounting, they would like to seek your guidance to understand some financial aspects that will help them build the new business into a successful venture.
Task 1 Prepare a short report (400 words) for your uncle and aunt explaining the purpose of accounting. Explain why it is important to record transactions and how it should be recorded. You may make reference to the accounting standards, if necessary. (10 Marks)
Task 2 Write a note to your uncle explaining the differences between capital and revenue items of expenditure and income. Use examples related to a supermarket so that your uncle and aunt will understand better. (10 Marks)
2
May 14, 2012
[
EXECUTIVE
DIPLOMA]
Task 3
Business A and B are both engaged in retailing, but seem to take a different approach to this trade according to the information available. This information consists of a table of ratios, show below: Ratio Current ratio Quick assets (acid test) ratio Return on capital employed (ROCE) Return on shareholders’ funds (ROSF) Accounts receivable turnover Accounts payable turnover Gross profit percentage Net profit percentage Inventory turnover Business A 2:1 1.7 : 1 20% 30% 63 days 50 days 40% 10% 52 days Business B 1.5 : 1 0.7 : 1 17% 18% 21 days 45 days 15% 10% 25 days
Required: (a) Explain briefly how each ratio is calculated. (b) Describe what this information indicates about the
References: must be included and taken from reliable sources such as books and journals using the Harvard referencing system. 3. Plagiarism, copying and cheating will not be tolerated, where no marks will be awarded. 4. Comb bind the assignment well. 5. The cover of the assignment should include the following: Name of university, faculty and course Name of student, metric number, programme Name of instructor Address, e-mail and telephone number 2500 word count End of Coursework 7