Questions from General Accounting

Q: Assume that you were an IT manager in a large entity and

Assume that you were an IT manager in a large entity and that the services that you provide are made available to both internal and external parties. Specify how you would go about negotiating an appr...

Q: Agra Limited has been asked to quote a price for a special

Agra Limited has been asked to quote a price for a special contract. The details are as follows: 1 The specification required a quotation for 100,000 units. 2 The direct costs per unit for the order w...

Q: Foo Limited has been asked to quote for a special order.

Foo Limited has been asked to quote for a special order. The details are as follows: 1 Prices are to be quoted at order levels of 50,000, 100,000 and 150,000 units respectively. Foo has some surplus c...

Q: The law should lay down precise formats, contents and methods for

The law should lay down precise formats, contents and methods for the preparation of limited liability company accounts.’ Discuss.

Q: Bamboo Limited is a highly specialist firm of central heating suppliers operating

Bamboo Limited is a highly specialist firm of central heating suppliers operating exclusively in the textiles industry. It has recently been asked to tender for a contract for a prospective customer....

Q: Dynasty Limited has been involved in a research project (code named

Dynasty Limited has been involved in a research project (code named DNY) for a number of months. There is some doubt as to whether the project should be completed. If it is, then it is expected that D...

Q: In capital expenditure appraisal, management cannot cope with any technique that

In capital expenditure appraisal, management cannot cope with any technique that is more advanced than payback.’ How far do you think that this assertion is likely to be true? Answer: 1. The tech...

Q: All capital expenditure techniques are irrelevant because: (a

All capital expenditure techniques are irrelevant because: (a) They cannot estimate accurately future cash flows; (b) It is difficult to select an appropriate discount rate.’ Discuss. Answer: 1...

Q: Do any of the traditional capital investment appraisal techniques help in determining

Do any of the traditional capital investment appraisal techniques help in determining social and welfare capital expenditure proposals? Answer: 1. Most of the traditional techniques do depend on...

Q: We can all dream up new capital expenditure proposals’, asserted the

We can all dream up new capital expenditure proposals’, asserted the Managing Director, ‘but where is the money coming from?’ How might the proposals be financed?