| Question 1: Accounting concepts A. The owner of Computer World‚ Heath is confused about the depreciation expense for building in the income statement and the carrying amount in the balance sheet‚ and would like you to explain the following to him: i) Why is depreciation expense recoded in the income statement for the building as Heath believes the building is worth more now than when he bought it five years ago? [3] In order
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statement. Let’s look at some of the differences between cash flow and funds flow statement – 1. While funds flow statement reveals the change in the working capital of a company between two balance sheet dates while cash flow statement reveals the change in the cash position of the company between two balance sheet dates. 2. As funds flow statement shows the change in working capital it deals with all the components of working capital while cash flow statement deals only with cash and cash equivalents
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Section C. The intended marks for questions or parts of questions are given in brackets [ ]. Transactions should be recorded in the answer book. All calculations should be shown clearly. All working‚ including rough work‚ should be done on the same sheet as‚ and adjacent to‚ the rest of the answer. --------------------------------------------------------------------------------------------------------------- SECTION A PART I (20 Marks) Answer all questions. Question 1 [10 × 2] Answer
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equivalent only when it has a short maturity of three months or less from the date of acquisition. An illustrative list of disclosures required under the act is enclosed (Pg 151) BALANCE SHEET I LIABILITIES: Share Capital: As per old schedule VI‚ debit balance on the allotment or call account is presented in the Balance Sheet not as an asset but by way of deduction from Called-up capital. However‚ as required by Clause K of Note 6A of the Revised Schedule VI‚ calls unpaid are to be disclosed separately
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Unit 2 : Written Test Unit 3 : Viva Voce’ 24 20 42 4 marks 12 marks (one hour) 4 marks 86 12 24 12 12 26 12 8 20 OR Part C: Computerized Accounting 5. Overview of Computerized Accounting System 6. Accounting Applications of Electronic Spread sheet 7. Using Computerized Accounting System 8. Data Base Management System 9. Practical Work Unit 1 : File 4 marks Unit 2 : Practical Examination 12 marks (one hour) Unit 3 : Viva Voce’ 4 marks 40 4 6 4 6 20 86 40 Note: The Question Paper will
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Some months represent particularly high or low sales volumes or may require taxes or capital expenditures. To finish the master budgeting process‚ Riordan would use information gathered from the master budget to prepare a budgeted balance sheet. A budgeted balance sheet would be used to project the financial status of Riordan. To improve the quality of Riordan’s master budget‚ managers need to know. Why the budget is being prepared? Who will read and use it? How the information will be presented
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Roll No. 521117331 Name Chander Shekher ASSIGNMENTS M.Com – 3rd Semester Subject Name: Management Accounting Subject code: MCC 304 Q1 What are the limitations of management accounting Answer Limitations of Management Accounting Management accounting‚ being comparatively a new discipline‚ suffers from certain limitations‚ which limit its effectiveness. These limitations are as follows: (i) Limitations of basic records: Management accounting derives its information from financial accounting
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E5-18 The comparative balance sheets of Madrasah Corporation at the beginning and end of the year 2014 appear below. MADRASAH CORPORATION Balance Sheets Assets Dec. 31‚ 2014 Jan. 1‚ 2014 Inc./Dec. Cash $ 20‚000 $ 13‚000 $ 7‚000 Inc. Accounts receivable 106‚000 88‚000 18‚000 Inc. Equipment 39‚000 22‚000 17‚000 Inc. Less: Accumulated depreciation—equipment 17‚000 11‚000 6‚000 Inc. Total $148‚000 $112‚000 Liabilities and Stockholders’ Equity Accounts payable $ 20‚000 $ 15‚000
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Litwin‚ Inc. Comparative Balance Sheets December 31‚ 2008 2007 Assets: Current Assets: Cash $ 690‚000 $ 540‚000 Accounts Receivable (net) 1‚560‚000 1‚080‚000 Merchandise Inventory 1‚950‚000 1‚260‚000 Prepaid Expenses 351‚000 315‚000 Total Current Assets 4‚551‚000 3‚195‚000 Long-Term Investments 225‚000 Plant Assets: Property‚ Plant & Equipment 2‚190‚000 1‚440‚000 Accumulated Depreciation (450‚000) (270‚000) Total Plant Assets 1‚740‚000 1‚170‚000 Total Assets
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22 Accounting Changes and Error Analysis 22-1 Accounting Changes and Error Analysis Accounting Changes Error Analysis Changes in accounting policy Changes in accounting estimate Balance sheet errors Income statement errors Balance sheet and income statement effects Change in reporting entity Correction of errors Summary Motivations for change of method 22-2 Comprehensive example Preparation of statements with error corrections Changes in Accounting Principle
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