Questions from Financial Accounting

Q: You are the management accountant at the head office of a company

You are the management accountant at the head office of a company which owns retail shoe shops throughout the country. The shops are grouped into areas, each having an area manager. Goods for sale are...

Q: Binding Machines Ltd sells wire-loop binding machines to printing units

Binding Machines Ltd sells wire-loop binding machines to printing units. The company has three separate departments: Department A: sells new machines Department B: sells second-hand machines Depart...

Q: The board of directors of Kirkside Glassware Ltd is considering the following

The board of directors of Kirkside Glassware Ltd is considering the following proposed investment projects: It is estimated that each product will provide benefits in terms of reduced cash outflows, m...

Q: You are the recently appointed financial controller of Motorway Catering Supplies Ltd

You are the recently appointed financial controller of Motorway Catering Supplies Ltd (MCS) that has successfully operated motorway service stations for many years. It has been given the opportunity b...

Q: Weston plc produced the following draft statement of financial position (balance

Weston plc produced the following draft statement of financial position (balance sheet) as on 1 May Year 4. During June, the following transactions and events occurred: 1. The company bought stock co...

Q: Assume that fee income and costs are the same in Year 2

Assume that fee income and costs are the same in Year 2 as in Year 1. Record the transactions and events of Year 2 in an accounting equation spreadsheet. Prepare the statement of financial position (b...

Q: Read the dialogue between David and Leona. What errors can occur

Read the dialogue between David and Leona. What errors can occur in reporting the amount of ‘inventories’ (stocks) in financial statements?

Q: The following information has been gathered from the accounting records of Jonathan’s

The following information has been gathered from the accounting records of Jonathan’s Hair Stylists. Using the accounting equation, calculate (a) the amount of ownership interest at...

Q: Mulberry is a vertically integrated luxury brand which was founded in 1971

Mulberry is a vertically integrated luxury brand which was founded in 1971 in Somerset. The Group designs, develops, manufactures, markets and sells products under the Mulberry brand name. The Group h...

Q: Domino’s Pizza International Franchising Inc. (‘DPIF’) is the owner

Domino’s Pizza International Franchising Inc. (‘DPIF’) is the owner of the Domino’s brand across the globe. We have two Master Franchise Agreements in place with DPIF, which gives us exclusive rights...