Corporate Finance Practice Exam 1. The difference between earnings and cash flow is the firm’s earnings are the bottom line of their income statement and is a measure of the firm’s income over a given period of time. The cash flow of a firm shows how a firm has used the cash it earned during a set of time. There are two reasons that the income statement does not show the amount of cash earned. One‚ there are non-cash entries on the income statement and second‚ there are certain uses such as
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Venue ____________________ Seat Number ________ Student Number |__|__|__|__|__|__|__|__| Family Name _____________________ First Name _____________________ Venue ____________________ Seat Number ________ Student Number |__|__|__|__|__|__|__|__| Family Name _____________________ First Name _____________________ This exam paper must not be removed from the venue School of Business SAMPLE EXAMINATION ACCT1101 Account for Decis Making This paper is for St Lucia Campus students
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2. Costing aircraft components A British Aerospace case study Introduction When we think about the cost of an aircraft‚ we tend to think of the cost of buying the product rather than the costs of running it! British Aerospace’s service to the customer does not stop at the aircraft acquisition stage‚ when the aeroplane is sold to the customer. If anything‚ this is when the customer relationship begins. This case study focuses upon the processes involved in costing aircraft components. Given the
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10 Principles of Financial Management The 10 simple principles that do not require knowledge of finance to understand. However‚ while it is not necessary to understand finance in order to understand these principles‚ it is necessary to understand these principles in order to understand finance. Keep in mind that although these principles may at first appear simple or even trivial‚ they will provide the driving force behind all that follows. These principles will weave together concepts and techniques
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PART – 1 –Project objective and overall research approach 1.1 Introduction 1.1.1 Topic chosen The topic I’ve chosen for my research project is “Topic No-8 - Business and financial performance over a three year period”. My choice for organization is “Lloyds Banking Group (LBG)”. I’ve made comparing LBG with its competitor Barclays Group to be meaningful analysis. 1.1.2 Reason for choosing topic area During my ACCA study‚ I like F7 (financial reporting) and P3 (Business
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Monthly Cash Budget | | February | March | April | Receipts: | | | | Cash Sales | $ 636‚000 | $ 614‚000 | $ 556‚000 | Credit Sales | $ 4‚195‚913 | $ 4‚038‚450 | $ 3‚863‚200 | | $ 4‚831‚913 | $ 4‚652‚450 | $ 4‚419‚200 | Payments: | | | | Salaries and Wages | $ 874‚000 | $ 916‚000 | $
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after tax for the period was RM139.7 million compared to RM104.8 million in the same quarter of 2013. The Group’s cash from operations was RM78.8 million‚ compared to RM240.3 million in the immediate preceding quarter ended 31 December 2013. Net cash flow in the quarter amounted to a RM84.7 million outflow‚ as cash out flows from investing activities exceeded operating and financing cash inflows. Second quarter 2014 (2Q14) The Group recorded revenue of RM1310.9 million for the quarter ended 30 June
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The company was experienced a major loss that year. 3. What information can auditors obtain from a client’s cash-flow data that is relevant to the audit plan developed for the client? Information that can be obtained would assist with the audit plan developed for the client would be if the resources are being used wisely. The statement of cash flow will illustrate how cash is being produced and where it is being spent. 4. What management assertions did Star violate in its original
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Year 1: 1.The owners contributed $24‚000 cash. 2.At the beginning of the year‚ rented a warehouse for two years with a prepaid rent payment of $12‚000. 3.Purchased $10‚000 of inventory on account. 4.Sold half the inventory for $24‚000‚ receiving $20‚000 in cash and an account receivable of $4‚000. 5.Paid wages of $6‚000. Accrued wages payable of $4‚000. 6. Entered into a contract with Pauls’ Company to sell remaining inventory in Year 2. Received a cash advance of $6‚000 from Pauls’ Company.
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mutually exclusive projects 5. Kelly’s baskets make handmade baskets for distribution to upscale retail outlets. The firm is currently considering making handmade wreaths as well. Which one of the following is the best example of incremental operating cash flow related to the wreath project? a) Storing supplies in the same space currently used for materials storage b) Planning on lower interest expense by assuming the proceeds of the wreath sales will be used to reduce the firms currently outstanding
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