Accounting Answers

A. Choose the letter that corresponds the correct answer.

1.) Vertical Analysis of the statement of financial condition is also known as:

A. Common-size statement of financial position

B. Common-size statement of income

C. Common-size financial performance

D. Vertical SFP

2. The base amount used in a vertical comprehensive income stayement analysis is:

A. Cost of Sales

B. Total Sales

C. Net Sales

D. Gross Profit

A. Choose the letter that corresponds to the correct answer. (Refer to the information below)

(A business had owner's equity of 250,000 and 350,000 in 2020 and 2019 respectively)

1.) What is the behavior of the owner's equity over time?

A. Increasing

B. Decreasing

C. Not moving

D. Slow moving

2.) What is the peso change in owner's equity?

A. 100,000

B. -100,000

C. 29%

D. 40%

3.) What is the percentage change in owner's equity?

A. -29%

B. -40%

C. 29%

D. 40%

A. Choose the letter that corresponds to the correct answer.

1.) This transforms financial statement data into information qhich is interpreted and used as basis for better economic decisions and actions.

A. Financial Statement technique

B. Financial Statement comparison

C. Financial statement evaluation

D. Financial statement analysis

2.) The other term for horizontal analysis.

A. Change Analysis

B. Trend analysis

C. Total Analysis

D. Time Analysis

A. Perform Vertical SCI Analysis for 2020 Statement of Financial Performance.

-Net Sales - 1,687,500

-Cost of Sales - 1,046,250

-Selling Expenses - 270,000

-Administrative Expenses - 135,000

-Interest Expense - 74,250

-Net Income - 162,000

A. Perform Horizontal SCI Analysis for 2020 uaing 2019 as base year.

1. What is the Peso Change and % Change if in 2020 the net sales is 1,687,500 while in 2019, the net sales is 1,350,000?

2. What is the Peso Change and % Change if in 2020 the Cost of Sales is 1,046,250 while in 2019, the Cost of Sales is 877,500?

3. What is the Peso Change and % Change if in 2020 the Selling Expenses is 270,000 while in 2019, the Selling Expenses is 162,000?

4. What is the Peso Change and % Change if in 2020 the Administrative Expenses is 135,000 while in 2019, the Administrative Expenses is 121,500?

5. What is the Peso Change and % Change if in 2020 the Interest Expense is 74,250 while in 2019, the Interest Expense is 54,000?

6. What is the Peso Change and % Change if in 2020 the Net Income is 162,000 while in 2019, the Net Income is 135,000?

A. Perform Vertical SFP Analysis for 2020 Statement of Financial Position.

-Current Assets - 250,000

-Property, Plant and Equipment - 792,000

-Current Liabilities - 182,000

-Long Term Debts - 266,000

-Owner's Capital - 594,000

A. Perform Horizontal SFP analysis for 2020 using 2019 as base year. The aggregated Financial Statement of CocoMelon Company is presented below:

1. What is the Peso Change and % Change of Current Assets if in 2020 there is 250,000 and in 2019 there is 200,000?

2. What is the Peso Change and % Change of Property, Plant and Equipment if in 2020 there is 792,000 and in 2019 there is 660,000?

3. What is the Peso Change and % Change of Current Liabilities if in 2020 there is182,000 and in 2019 there is 140,000?

4. What is the Peso Change and % Change of Long-term Debts if in 2020 there is 266,000 and in 2019 there is 190,000?

5. What is the Peso Change and % Change of Owner's Capital if in 2020 there is 594,000 and in 2019 there is 530,000?

Question 1

Batu Hampar Enterprise is a partnership business involved in homestay business at Yan, Kedah. Below is the financial information of the partnership:

a)   Divisible income of the business for the year ended 31 December 2019 is RM 12,000 and partnership remuneration and allowances is RM 34,000.

b)   The partners, Rahim and Jalil allocated with 6:4 profit/loss sharing ratio. Starting from 1st October 2019, Mamat join the partnership and the profit/loss allocation changed to 3:2:1 (Rahim: Jalil: Mamat).

c)    Allocation for partnership remuneration is also based on profit/ loss allocation ratio.

d)   Capital allowance for the year 2019 is RM 9,000.

e)   Donations was made at 31st July 2019 to Rumah Anak Yatim Al-Luqman (approved & receipt attached) cost RM 3,000.

Required:

Compute the total income for each partner for the year of assessment 2019. 

1.     Suppose a firm sells good X in a perfectly competitive market its per unit price is 11 birr and the total cost of producing good X is given by TC = 1/3Q³ – 3Q² 20Q + 100, then answer the following questions.

a)     What is average variable cost when Q=5

b)     What is the total fixed cost when Q=0

c)     What is marginal cost when Q=6

1.     Suppose a firm sells good X in a perfectly competitive market its per unit price is 11 birr and the total cost of producing good X is given by TC = 1/3Q³ – 3Q² 20Q + 100, then answer the following questions.