The concept that states that the financial affairs of the owner must be kept separate from the financial affairs of the business is the...
In the event of bankruptcy, the shareholders are not responsible for the debts of the business. This is because of...
In the financial statements, debtors will be shown as trade and other...
The amount owing to SARS at the end of the previous financial year for income tax was paid, R37 400.
Received R180 000 for additional shares issued at par value.
A final dividend of R55 000 was declared by the directors at the end of the current financial year.
Indicate the corrections that must be made to the Debtors' Control account in the General Ledger by showing the amounts with:+ for increase; – for decrease OR write 'no change'.
Prepare the correct Debtors' List on 30 September 2013.Show workings with the relevant amounts in brackets to earn part-marks.
Raw materials used in the factory
Advertising expenses
Office telephone account
Salary of the factory foreman
Fill in the missing figures in the Production Cost Statement [8] and Note for Factory Overhead Cost [5] in the excel file provided. Upload the completed excel document as your answer.
The internal auditor is not satisfied with the direct labour cost for the year. Explain the problem relating to the direct labour cost and quote figures to support your explanation [3]. Give TWO possible solutions to this problem [4].
Calculate the number of units that Sally needed to produce in order to break even in 2013.
Comment on the number of bags she is producing. Quote figures or financial indicators to support your answer. Refer to the break-even calculation in your answer.
Profit on the sale of an asset is a/an ...
The portion of a loan that will have to be repaid within a year is a/an ...
Consumable stores on hand are a/an ...
Interest on a bank overdraft is a/an ...
Complete the Income Statement on the excel document provided. Upload the completed document as your answer.
Complete the note for Retained Income on the excel document provided. Upload your completed version of the excel document.
As a shareholder, why would you be concerned about this audit report? Explain. State THREE points.
Why would the directors want to spend money on these programmes? Explain the main benefit of EACH programme for the company.
Apart from the points mentioned above, why would the directors want to mention these programmes in the annual report? Explain.
Provide the missing figures indicated by A to F in the Cash Flow Statement in the provided excel document. Show workings to earn part-marks. Upload your completed excel document as your answer.
Percentage net profit after tax on sales.
Earnings per share.
Debt-equity ratio.
Return on average shareholders' equity (ROSHE).
The directors are of the opinion that the operating efficiency of the company has improved. Quote and explain TWO financial indicators (with figures) to support their opinion.
The shareholders are happy with their return, earnings and dividends. Quote and explain THREE financial indicators (with figures) to support their opinion.
New shares were issued at the beginning of the financial year at R9,00 each. As an existing shareholder, would you be satisfied with this issue price? Quote TWO financial indicators (with figures) to explain your opinion.
A large loan repayment was made. Comment on whether this was a good idea or not. Quote TWO financial indicators (with figures) to support your comment.
Apart from the dividends and the loan, what other major decisions by the directors are reflected in the Cash Flow Statement? State TWO major decisions and quote the relevant figures. Also explain how EACH of these decisions would benefit the company in future.
The main purpose of preparing the Cash Budget is ...
ONE item in the Cash Budget that will not be reflected in a Projected Income Statement is ...
ONE item that will appear in a Projected Income Statement but not in a Cash Budget is ...
Calculate the missing figures in the Debtors' Collection Schedule and the Cash Budget indicated by A to H.
Explain what you would say to Peter about each of the following items at the end of November, and give ONE point of advice in EACH case:
In order to increase sales and the number of customers, Peter intends to advertise that credit limits for all credit customers will be increased to R35 000 and that new customers are welcome to open accounts during April.Give THREE points of advice to Peter in this regard.
Calculate the missing figures indicated by A, B and C in the Fixed Assets Note.
Prepare the Asset Disposal Account for the computer sold on 31 January 2013 using the excel document provided. Upload your completed version of the document as the answer.
You are the internal auditor. State TWO concerns that you would voice in respect of the fixed assets with the board of directors. Explain in EACH case why you are concerned.
Calculate the value of closing stock according to the FIFO method on 31 July 2013.
Calculate:
The business aims at a mark-up of 30% on cost.As the internal auditor, what would you investigate? Explain. State TWO points.
The stock holding period for 2012 was 30 days.Should Mohammed be satisfied with the stock holding period for 2013? Explain.
Identify ONE problem in relation to each shop, quoting figures in identifying each problem. In EACH case, advise Sizwe on how to solve the problem.