Accounting Answers

George’s T-Shirt Shop produces 5,000 custom printed T-shirts per month. George’s fixed costs are $15,000 per month. The marginal cost per T-shirt is a constant $4. What is his break-even price? What would be George’s break-even price if he were to sell 50% more shirts?

You and two friends of yours decided to handle the supply of vegetables to the shops of the city and created a limited liability company. Your friends have invested in the case 5 thousand euro each and you gave the company the right to use your personal car for one year. The car costs 4 thousand euro, you estimated your contribution in the form of the rights of use as agreed with the partners at 7 thousand euro. You have successfully completed the year of work. At your disposal 1800 euro of profit after accounting all costs. How will you share profit between partners?

Provide a list of the payments that will need to be remitted to external parties at various frequency levels throughout the year as part of payroll system.

When you receive a declaration, how long do you get to send the form to the ATO? What happens if you fail to do so?

How would you describe period- end adjustments and which aspects of the business activity can be highlighted in it? Provide examples.

2. Describe the purpose of a trial balance and identify three posting errors that would not be revealed by an 'out-of-balance' trial balance.

You have a new employee, Steven Maxwell who will be working in the warehouse. You have provided the TFN declaration form however Steven does not want to quote his TFN. What do you do in this situation?

9.The purpose of Accounting is to ….....
a.Value stocks and materials
b.Provide means of keeping money
c.Provide financial information
d.Calculate figures

10.Under the entity concept …...... … is different from its owner
a.Limited company only
b.Private cmpany only
c.Any business organisation
d.Partnership only

Prepare the cash flow statement from investing activities of Alpha Creative Ltd for the year ended March31, 2019 -

Particulars Amount

Plant acquired 160000

Claim received for loss of plant in fire 45500

Unsecured loans given to subsidiaries 595000

Interest on loan received from subsidiary companies 72500



• Also give reasons for the classification of above activities as inflow /outflow

A business uses linear depreciation for its machines. The depreciation time is set to five years. The machines were purchased at the entrance to Year 1 for NOK 3.000.000 including VAT ( Norwegian mva). Residual Value at the expiration of the service life was estimated at NOK 400.000 without VAT(Norwegian mva). After four years the machine was sold. The loss of sales was NOK 30.000.
What was the sales total including VAT ( Norwegian mva)?