Accounting Answers

1. Prepare a budget versus actual variance analysis report for the end of March for the community services organisation Discoverer. They made an original assumption based on the respite manager’s undertaking that a new food expense would be year to date $900 with the actual amount spent $2,700 at the 31.3.20XX. Include food for this month separately on the report for $300 actual and only $100 budgeted. Include whether the amount is favourable (F) or unfavourable (U), show the percentage (%).

2. Prepare a request for budget revision form to accompany the variance report. Note that the request is due to a new program which had an original incorrect assumption.

Discuss the limitations of financial ratios in using them to evaluate business.

On average, what is the minimum length of two Wheeler's operating cycle? The maximum length?

Explain five uses of financial ratios

Differentiate between non-purchased goodwill and purchased goodwill

A limited has an authorized share capital of 200,000 shares of Kshs. 1 each out of which only 150,000 shares have been issued. Although the firm requested the shareholders to pay 80 cents per share, they were able to pay 50 cents per share.
Required:
Determine the:
i. Authorized share capital
ii. Issued share capital
iii. Called up share capital
iv. Uncalled up share capital
v. Paid up share capital

Explain the following terms using a suitable illustration
i. Subscription in arrears
ii. Issued share capital
iii. Capital expenditure

Discuss the limitations of financial ratios in using them to evaluate business

Narrate the duties of an auditor in connection with cash sales.

a) When do companies normally post to: 1) the subsidiary accounts and 2) the general ledger control accounts?
b) Describe the relationship between a control account and subsidiary ledger.