Questions from General Accounting

Q: Accounting ratios are only as good as the data on which they

Accounting ratios are only as good as the data on which they are based.’ Discuss. Answer: 1. Accounting ratios attempt to express in simple terms the relationship between factors that may contain...

Q: How far do you accept the argument that the return on capital

How far do you accept the argument that the return on capital employed ratio can give a misleading impression of an entity’s profitability? Answer: 1. ROCE is a complex ratio because there are ma...

Q: Is ratio analysis useful in understanding how an entity has performed?

Is ratio analysis useful in understanding how an entity has performed? Answer: 1. Yes, provided the underlying information has been accurately and consistently prepared, that the basic deficienci...

Q: Imagine that you have £10,000 that you are willing

Imagine that you have £10,000 that you are willing to invest in shares. What follows are the 2014 financial statement of Sainsbury’s plc – a supermarke...

Q: The first step in preparing a strategic plan is to specify the

The first step in preparing a strategic plan is to specify the entity’s goals. Formulate three possible objectives for (a) a manufacturing entity and (b) a national charity involved in animal welfare....

Q: Assess the importance of taking into account behavioural considerations when operating a

Assess the importance of taking into account behavioural considerations when operating a management accounting system from the point of view of (a) the management accountant and (b) a senior departmen...

Q: Outline the main steps involved in preparing a strategic plan.

Outline the main steps involved in preparing a strategic plan.

Q: What is the difference between ‘planning’ and ‘control’?

What is the difference between ‘planning’ and ‘control’?

Q: ‘Management accountants hold an extremely powerful position in an entity and

‘Management accountants hold an extremely powerful position in an entity and this enables them to influence most of the decisions.’ How far do you think that this assertion is likely to be true in pra...

Q: Clare Wong spends a lot of her time working for a large

Clare Wong spends a lot of her time working for a large local charity. The charity has grown enormously in recent years and the trustees have been advised to overhaul their accounting procedures. This...