Questions from General Accounting


Q: Standard & Poor’s (S&P) (2018), one

Standard & Poor’s (S&P) (2018), one of the leading credit rating organisations and a publisher of financial information and research services, identifies its debt rating proc...

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Q: Read the following extract (Cavanagh, Saunders & Pritchard 2015)

Read the following extract (Cavanagh, Saunders & Pritchard 2015) about how New South Wales winemakers have maintained their profitability. Maintaining premium wine prices and reacting to trends simila...

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Q: When calculating the return on asset ratio, the average asset balance

When calculating the return on asset ratio, the average asset balance is used as the denominator. When calculating the debt ratio, the year-end asset balance is used as the denominator. Explain the ra...

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Q: Explain the difference between income and revenue.

Explain the difference between income and revenue.

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Q: Identify what ratios a bank lender would be particularly interested in.

Identify what ratios a bank lender would be particularly interested in.

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Q: The working capital ratio for Butler Business has progressively increased from 1

The working capital ratio for Butler Business has progressively increased from 1.2 times to 3.0 over the past three years. Discuss whether this trend is favourable.

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Q: Earnings before interest and tax (EBIT), rather than profit,

Earnings before interest and tax (EBIT), rather than profit, is sometimes used as the numerator in the ROA. Discuss the rationale for using EBIT rather than profit.

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Q: Discuss the differences in the type of budgets applicable for a manufacturer

Discuss the differences in the type of budgets applicable for a manufacturer compared to a service provider.

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Q: What is a chart of accounts and what is its role in

What is a chart of accounts and what is its role in the budgeting process?

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Q: Explain the main steps in the budgeting process.

Explain the main steps in the budgeting process.

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