Questions from General Accounting

Q: Moffat District Council has calculated the following net cash flows for a

Moffat District Council has calculated the following net cash flows for a proposed project costing £1,450,000: Required: Calculate the internal rate of return generated by the project. A...

Q: Prospect Limited is considering investing in some new plant. The plant

Prospect Limited is considering investing in some new plant. The plant would cost £1,000,000 to implement. It would last five years and it would then be sold for £50,000. The...

Q: Nicole Limited is considering investing in a new machine. The machine

Nicole Limited is considering investing in a new machine. The machine would cost £500,000. It would have a life of five years and a nil residual value. The company uses the straight-line...

Q: Hewie Limited has some capital available for investment and is considering two

Hewie Limited has some capital available for investment and is considering two projects, only one of which can be financed. The details are as follows: Required: Advise management on which project to...

Q: How independent do you think is the independent regulator (the Financial

How independent do you think is the independent regulator (the Financial Reporting Council)? How will its proposed successor (the Audit, Reporting and Governance Authority (ARGA)) be more independent?...

Q: Marsh Limited has investigated the possibility of investing in a new machine

Marsh Limited has investigated the possibility of investing in a new machine. The following data have been extracted from the report relating to the project: Cost of machine on 1 January Year 6: &Acir...

Q: Ugh!’ snorted the chair when confronting the chief accountant.

Ugh!’ snorted the chair when confronting the chief accountant. ‘Strategic management accounting is another of those techniques dreamed up by you and your mates to keep you all in a job.’ Could the cha...

Q: Activity-based management is fine in theory but impossible in practice

Activity-based management is fine in theory but impossible in practice.’ Discuss. Answer: 1. An outline of ABM should be given including a summary of its benefits and an outline of the difficulti...

Q: How far do you think that short budget forecasts would be more

How far do you think that short budget forecasts would be more useful than budgets tied in with the traditional annual financial reporting system? Answer: 1. This question requires a discussion o...

Q: Do you think that environmental management accounting is of any benefit to

Do you think that environmental management accounting is of any benefit to a company? Answer: 1. Environmental accounting and reporting is at an early stage of development. So there is no consens...