Ch2 Solutions To The Exercises
“Suggested Solutions to Exercise” in Financial Accounting for Management by Ramachandran & Kakani
Authored by Ram Kumar Kakani, “Copyright with Tata McGraw Hill Education Private Limited, 2011”
CHAPTER 2
Balance Sheet
Note: Answers to only half the questions have been provided. It gives you an opportunity to work on the rest problems and discuss about the relevant solutions. You are requested to complete this chapter before attempting the questions.
MULTIPLE CHOICE QUESTIONS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
(b)
(d)
(c)
(d)
(b)
(c)
(e)
(c)
(a)
(b)
(c)
(c)
(c)
(c)
EXERCISE
1.
Fill in the Blanks
1.1
(a)
Increase in liabilities
(b)
Increase in Equity
(c)
Decrease in any other asset
1
“Suggested Solutions to Exercise” in Financial Accounting for Management by Ramachandran & Kakani
Authored by Ram Kumar Kakani, “Copyright with Tata McGraw Hill Education Private Limited, 2011”
1.2 (a)
(b)
(c)
1.3
Liabilities
1.4
1.5
Asset
1.6
1.7
Increase; decrease
1.8
1.9
Footnotes
1.10
2)
True or False Statements
2.1
F
2.2
2.3
F
2.4
2.5
F
2.6
2.7
F
2.8
2.9
T
2.10 2.11 T
2.12 -
3)
Filling the Boxes
3.1
Assets = Liabilities + Owners Equity
3.2
3.3
25,000
3.4
4)
Complete the Blanks
4.1
(a)
Accounting Period
(b)
2
“Suggested Solutions to Exercise” in Financial Accounting for Management by Ramachandran & Kakani
Authored by Ram Kumar Kakani, “Copyright with Tata McGraw Hill Education Private Limited, 2011”
4.2
4.3
4.4
(c)
Financial Year
(a)
(b)
(c)
Assets
(a)
(b)
(c)
Current Assets
(a)
(b)
(c)
Current Liabilities
Capital
Intangible Assets (or Other Assets)
Share holders Equity
5.
Fill in the Blanks
5.1
Liquidity
5.2
5.3
Lower of cost or market price
5.4
5.5
Depreciation
5.6
5.7
Accounts Payable (or Trade Payables or Trade Creditors)
5.8
5.9
Lower of cost or market price
5.10 5.11 Liquidity
5.12 5.13 Bad Debts
5.14 5.15 Raw materials, Work in Progress (or Semi-Finished Goods) and Finished
Authored by Ram Kumar Kakani, “Copyright with Tata McGraw Hill Education Private Limited, 2011”
CHAPTER 2
Balance Sheet
Note: Answers to only half the questions have been provided. It gives you an opportunity to work on the rest problems and discuss about the relevant solutions. You are requested to complete this chapter before attempting the questions.
MULTIPLE CHOICE QUESTIONS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
(b)
(d)
(c)
(d)
(b)
(c)
(e)
(c)
(a)
(b)
(c)
(c)
(c)
(c)
EXERCISE
1.
Fill in the Blanks
1.1
(a)
Increase in liabilities
(b)
Increase in Equity
(c)
Decrease in any other asset
1
“Suggested Solutions to Exercise” in Financial Accounting for Management by Ramachandran & Kakani
Authored by Ram Kumar Kakani, “Copyright with Tata McGraw Hill Education Private Limited, 2011”
1.2 (a)
(b)
(c)
1.3
Liabilities
1.4
1.5
Asset
1.6
1.7
Increase; decrease
1.8
1.9
Footnotes
1.10
2)
True or False Statements
2.1
F
2.2
2.3
F
2.4
2.5
F
2.6
2.7
F
2.8
2.9
T
2.10 2.11 T
2.12 -
3)
Filling the Boxes
3.1
Assets = Liabilities + Owners Equity
3.2
3.3
25,000
3.4
4)
Complete the Blanks
4.1
(a)
Accounting Period
(b)
2
“Suggested Solutions to Exercise” in Financial Accounting for Management by Ramachandran & Kakani
Authored by Ram Kumar Kakani, “Copyright with Tata McGraw Hill Education Private Limited, 2011”
4.2
4.3
4.4
(c)
Financial Year
(a)
(b)
(c)
Assets
(a)
(b)
(c)
Current Assets
(a)
(b)
(c)
Current Liabilities
Capital
Intangible Assets (or Other Assets)
Share holders Equity
5.
Fill in the Blanks
5.1
Liquidity
5.2
5.3
Lower of cost or market price
5.4
5.5
Depreciation
5.6
5.7
Accounts Payable (or Trade Payables or Trade Creditors)
5.8
5.9
Lower of cost or market price
5.10 5.11 Liquidity
5.12 5.13 Bad Debts
5.14 5.15 Raw materials, Work in Progress (or Semi-Finished Goods) and Finished