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A. one year or less
B. the time in which all inputs are variable
C. a period in which the quantity of at least one input is fixed and the quantities of the other inputs can be varied
D. a period in which all inputs are fixed
Goodwill cannot be said to depreciate”. Explain the statement.
How has South Africa dealt with floating exchange rate over the last one year?
how do you relate the concepts of scarcity oportunity cost and efficiency another and to the discipline of economics
Egypt has a population of 100 million people, whereas Kenya has a population of 52 million people. Both nations are in Africa. This demographic trend is referred to as population dynamics.
a. True
b. False
From the given table calculate TR, MR and AR and highlight the relationship between
total revenue (TR) and marginal revenue (MR).
Quantity Price
50 200
60 150
70 100
80 50
90 10
You are the auditor of motorway Ltd, a company trading in the motor industry. On examining the company’s latest annual financial statements, you make the following observations
• The gross profit margin which had consistently been 30% over the past five years
has dropped to 25%
• The current ratio, which in the past has always been at the same level as the
industry average of 2:1 has increased to 4;1
Required
1. List 3 possible factors which could have caused the reduction of the gross profit
margin. (3 marks) 2. List 3 possible factors which could have caused the increase in the current ratio.
(3 marks) 3. Briefly discuss whether an increase in the current ratio always represents an
improvement for a business. (4 marks)
Boikago Dance Studio accounting records reflect the following account balances at January 1, 2020.
Cash R100,000 Supplies R 4,000
Ordinary shares 50,000 Retained Earnings 54,000
During 2020, the following transactions occurred:
1) On February 1, rented a small studio for a one-year period. Paid R6,000 cash.
2) On November 1, received R1,200 cash for dance lessons to be provided evenly
over November, December, and January.
3) By December 31, used R3,000 of the supplies
4) At December 31, accrued R3,000 in wages and salaries.
5) During the year, paid cash for R20,000 in wages and salaries
6) During the year, earned R40,000 cash in dance lesson revenue.
1) Prepare an income statement for 2020. Ignore income tax effects. (6 marks)
2) Prepare a classified balance sheet for Boikago Dance Studio at December 31, 2020. (9 marks)
Boikago Dance Studio accounting records reflect the following account balances at January 1, 2020.
Cash R100,000 Supplies R 4,000
Ordinary shares 50,000 Retained Earnings 54,000
During 2020, the following transactions occurred:
1) On February 1, rented a small studio for a one-year period. Paid R6,000 cash.
2) On November 1, received R1,200 cash for dance lessons to be provided evenly
over November, December, and January.
3) By December 31, used R3,000 of the supplies
4) At December 31, accrued R3,000 in wages and salaries.
5) During the year, paid cash for R20,000 in wages and salaries
6) During the year, earned R40,000 cash in dance lesson revenue.
Required:
1.
Determine the effect on the accounting equation of the preceding transactions. Create a table to reflect the increases and decreases in accounts. (15 marks)
where possible add more columns for different accounts according to need e.g. cash would have a column under Assets.
