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
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investing and financing activities Financing activities Investing activities Operating activities Operating activities E14-‐1 Blevins Inc Condensed Balance Sheet 2012 Assets Current Assets Plant assets Total Assets Liabilities Current Liabilities Long Term Liabilities Total Liabilities Stockholder’s Equity Common Stock‚ $1 Par Retained Earnings
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Balance Sheet is a ’snapshot’ in time of who owns what in the company‚ and what assets and debts represent the value of the company. (It can only ever be a snapshot because the picture is always changing.) The term ’balance sheet’ is derived from the simple purpose of detailing where the money came from‚ and where it is now. The balance sheet equation is fundamentally: (where the money came from) Capital + Liabilities = Assets (where the money is now). Hence the term ’double entry’ - for every change
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combinations must be accounted for by applying the purchase method. This involves 3 key steps: a) Identifying an acquirer‚ b) Measuring the cost of the business combinations and c) Allocating the cost of the business combination to the identifiable assets and liabilities acquired. a) Identifying the Acquirer The acquirer should be identified for all business combinations‚ The acquirer is the entity which obtains controls over the other entity‚ There are a number of ways in which control can be
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SECTION B In the examination answer booklet complete each of the following short answer questions as required. Question 21: (4 marks) What is a cash generating unit? For the purposes of asset impairment testing‚ when is it necessary to consider cash generating units rather than the individual assets comprising the unit? Question 22: (4 marks) Explain the general nature of the accounting requirements specified in AASB 1039: Concise Financial Reports. Question 23: (4 marks) Define the terms
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• Consolidation journals are posted into the consolidation worksheet in “adjustment” columns as follows: Extract only Parent P Ltd. $’000 Subsidiary S Ltd. $’000 Adjustments DR Lecture 9 part b Consolidation: Wholly owned subsidiaries Prepared by Emma Holmes and Rick Newby Land Invt in S Ltd Receivables Cash 400 120 200 40 760 150 Share capital Retained earnings Creditors 500 160 100 760 100 20 50 170 Cons. Balances CR XX XX XX
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(pg. 120). It is financially conservative‚ and has undergone a “major cost-savings initiative to counterbalance the recent surge in packaging and freight costs” (pg. 120). Beer Company C has net fixed assets of 54.7% of total assets while Beer Company D’s net fixed assets were 16.0% of total assets‚ which leads me to believe Beer Company C is the national company because it owns a network of breweries and distribution centers‚ as well as beer-related businesses – while Beer Company D doesn’t own
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RATIO ANALYSIS OF ATLAS BANGLADESH LTD. LETTER OF TRANSMITTAL August 07‚ 2007 Mr. Mokhdum Morshed Faculty‚ FIN 254 School of Business North South University Dear Sir‚ It is a pleasure for us to do this challenging and interesting ratio analysis under your guidance. This analysis describes the overall financial condition of Atlas Bangladesh Ltd. By doing this ratio analysis each one of us has stretched our-selves to the maximum to present you a very thoroughly and analyzed report on
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accounting is a system of accounting that aims the distributed cost value to the less salvage value‚ other basic value of tangible capital assets‚ over the estimated useful life of a unit. It’s process of allocation and not valuation B. Discuss its conceptual merit with respect to: i. the value of the asset - The depreciation base is the value of the asset that should be distributed over the expected useful life‚ the concept of depreciation is extremely important in financial accounting because
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Depreciation Expense Other Income/Expense EBIT Interest Expense Tax Expense Income from Cont Operations Net Income Balance Sheet Cash Short Term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets Long Term Investments PP&E Net Goodwill Intangibles Other Assets Total Assets Current Year $ 61‚494 49‚128 12‚366 661 7‚302 0 0 4‚403 970 116 3‚549 199 715 2‚635 2‚635 Percent 100.0% 79.9% 20.1% 1.1% 11.9% 0.0% 0.0% 7.2% 1.6% 0.2% 5.8% 0.3% 1.2% 4.3% 4.3% Prior Year $ 52‚902
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