Questions from Financial Accounting

Q: Home Bakeries Ltd receives a training grant to cover staff training costs

Home Bakeries Ltd receives a training grant to cover staff training costs that will be incurred evenly over the next 2 years. Explain the accounting treatment.

Q: The following is a summarized statement of financial position (balance sheet

The following is a summarized statement of financial position (balance sheet) of West plc: The company is considering three possible changes to its capital structure: (a) Issue for cash 80 million ad...

Q: Prepare a statement of financial position (balance sheet) from the

Prepare a statement of financial position (balance sheet) from the following list of assets and liabilities using the accounting equation to deduce the ownership interest as the missing item.

Q: City Centre plc has owned a block of offices for many years

City Centre plc has owned a block of offices for many years. The building is recorded in the statement of financial position (balance sheet) at £750,000, the historical cost being £900,000 less accumu...

Q: Suppose the block of offices was to be valued by a professional

Suppose the block of offices was to be valued by a professional expert at £640,000. What effect would this information have on the reported financial statements?

Q: The following financial statements relate to Charity plc: /

The following financial statements relate to Charity plc: Required (a) Calculate ratios which measure: (i) liquidity and the use of working capital; (ii) management performance; and (iii) gearing. (b)...

Q: Calculate ratios for Andrew Hunt plc and evaluate by comparison with the

Calculate ratios for Andrew Hunt plc and evaluate by comparison with the industry average. Dividend proposed for the year is £150,000 or 10 pence per share. Industry average ratios Price...

Q: Calculate ratios for Ed’s Enterprises and evaluate by comparison with the ratios

Calculate ratios for Ed’s Enterprises and evaluate by comparison with the ratios calculated for Andrew Hunt plc.

Q: A vehicle costing £20m and having accumulated depreciation of £12m

A vehicle costing £20m and having accumulated depreciation of £12m was sold for £5m. How will this information be reported in the statement of cash flows?

Q: The share capital account increased by £40m during Year 4.

The share capital account increased by £40m during Year 4. The share premium reserve increased by £20m. What amount of cash was raised by the issue of shares?