CHAPTER 1: INTRODUCTION TO FINANCIAL ACCOUNTING 1.1 USE‚ PREPARATION AND CONCEPTS * Use: The information derived from financial accounting is used by managers‚ investors‚ bankers‚ financial analysts and accountants‚ helping them to learn how to use information effectively and to do their jobs better. This information is essential to accountants for the services they provide. * Preparation: to be effective users of accounting information‚ people need to know something about how and
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Chapter 1 Exercises Answers 1) What are the key roles of a financial centre and to what extent is London a different Financial centre than New York? The key roles of a financial centre are to: 1) recycle funds from surplus agents to deficit agents 2) provide a range of financial services and securities to satisfy the needs of both deficit and surplus agents‚ households‚ companies and governments 3) ensure that funds flows from surplus to deficit countries The key difference between London and New
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PART 1 - Company Information Briefly provide answers to the following question for your assigned company. 1. Provide a brief overview of the company and its mission. PepsiCo is a food and beverage company on a global scale with various bands‚ which aims at improve quality and deliver sustainable development with a healthier future for human. There are six principles which are PepsiCo’s tenets: care for customers‚ consumers and the world we live in; sell only the products we can be proud
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and which I will make available on request in pursuance of any appropriate aspect of the marking and moderation of the work within the University Regulations. Name: Student Number: Course: Date: Signed……………………………….. Part A 1. Profitability Ratio: 1) Gross Profit Margin = Gross Profit / Sales Revenue x100% Year 2011: Gross profit = £11‚740 Sales revenue = £25‚300 Gross profit margin = 11‚740 / 25‚300 x100 = 0.464 x 100 = 46.4% Year 2010: Gross
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Chapter 1: Overview—The Financial Statements Chapter 1 introduces the four financial statements--Income Statement‚ Statement of Retained Earnings‚ Balance Sheet‚ and Statement of Cash Flows. Accounting as the language of business is discussed along with an introduction of the various users of accounting information. Financial and Managerial accounting are compared. The four ways to organize a business – proprietorship‚ partnership‚ limited – liability company‚ and corporation‚ are discussed
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Exercise 11-1 (10 minutes) 1. 2. 3. Exercise 11-2 (10 minutes) Average operating assets £2‚200‚000 Net operating income £400‚000 Minimum required return: 16% × £2‚200‚000 352‚000 Residual income £ 48‚000 Exercise 11-3 (20 minutes) 1. Throughput time = Process time + Inspection time + Move time + Queue time = 2.8 days + 0.5 days + 0.7 days + 4.0 days = 8.0 days 2. Only process time is value-added time; therefore the manufacturing cycle efficiency
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Financial accounting reports are prepared for the use of external parties such as shareholders and creditors‚ whereas managerial accounting reports are prepared for managers inside the organization. This contrast in basic orientation results in a number of major differences between financial and managerial accounting‚ even though both financial and managerial accounting often rely on the same underlying financial data. In addition to the to the differences in who the reports are prepared for
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01 MCQ FOR IMT 57 – FINANCIAL ACCOUNTING Test : (Journal‚ Ledger‚ Trial Balance‚ Errors) Name: _________________ Fundamentals of Accounting Max. Marks: 30 1. RPC Ltd. follows the written down value method of depreciating machinery year after year by applying the principle of (a) Comparability. (b) Convenience. (c) Consistency. (d) All of the above. 2. A change in accounting policy is justified
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University of Phoenix Material Role of Financial Accounting Versus Managerial Accounting Matrix Compare and contrast financial accounting and managerial accounting by answering the following questions in the matrix provided. Cite any sources you use in accordance with APA guidelines. Term or Concept Financial Accounting Managerial Accounting What is the primary purpose of the accounting system? The primary purpose is to produce forms portraying a company’s performance over a period of time
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1.1 PRINCIPLES OF MANAGEMENT 1. “The managers of tomorrow will not be a bigger man than his father was before him.” – Critically analyse this statement and discuss the tasks expected to be performed by future managers to effectively deal with management challenges. 2. Identify four corporate social responsibility initiatives adopted by corporates which you are familiar with. Pg 102 3. “More centralization and decentralization are not advisable” – Do you agree or disagree? Justify. Suggest
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