Questions from General Accounting

Q: The statement of financial position for Daffodil Pty Ltd reveals cash on

The statement of financial position for Daffodil Pty Ltd reveals cash on hand of $8000, accounts receivable of $48 000, inventory measured at $50 000 and plant and equipment measured at $116 000. The...

Q: An entity has total assets measured at $220 000 in the

An entity has total assets measured at $220 000 in the statement of financial position. The entity’s liabilities total $100 000, of which $60 000 is a bank loan. Calculate the entity’s net assets. Dis...

Q: List three essential characteristics necessary to consider an item either as an

List three essential characteristics necessary to consider an item either as an asset or a liability.

Q: The High Cloud Software Company wants to increase its asset base by

The High Cloud Software Company wants to increase its asset base by recognising its customer list as an asset. Discuss whether this is permissible under accounting standards.

Q: You are reviewing a statement of financial position and notice that goodwill

You are reviewing a statement of financial position and notice that goodwill appears on the statement. Relate this information to the entity’s past investing decisions. Discuss how goodwill is measure...

Q: There are four financial statements: the statement of financial position,

There are four financial statements: the statement of financial position, statement of profit or loss, statement of cash flows and statement of changes in equity. Describe the information conveyed by...

Q: Advantage Tennis Coaching, a business owned by sole trader Nicholas Cash

Advantage Tennis Coaching, a business owned by sole trader Nicholas Cash, had the following assets and liabilities as at the financial years ended 30 June 2019 and 30 June 2020. Required (a) What is...

Q: From the following account balances of Platypus Pty Ltd as at 30

From the following account balances of Platypus Pty Ltd as at 30 September 2019, prepare a statement of financial position in both the T-format and the narrative classified format. Cash at bank ………………...

Q: Nicholas Cash, the sole proprietor of Advantage Tennis Coaching (ATC

Nicholas Cash, the sole proprietor of Advantage Tennis Coaching (ATC), has met with his accountant to discuss preparation of ATC’s financial statements for the year ended 31 December 2020. The followi...

Q: Discuss the importance of showing profit or loss from continued operations separately

Discuss the importance of showing profit or loss from continued operations separately from the profit or loss from discontinued operations.