Questions from General Accounting


Q: It has been asserted that the main objective of a profit-

It has been asserted that the main objective of a profit-making entity is to make a profit, while that of a not-for-profit entity is to provide a service. Discuss this assertion in the context of the...

See Answer

Q: The following balances have been extracted from the books of Stuart for

The following balances have been extracted from the books of Stuart for the year to 31 March 2021: Required Prepare Stuart’s manufacturing account for the year to 31 March 2021.

See Answer

Q: Do you think a small limited liability company will benefit from engaging

Do you think a small limited liability company will benefit from engaging a firm of external auditors?

See Answer

Q: The following balances have been extracted from the books of the David

The following balances have been extracted from the books of the David and Peter Manufacturing Company as at 30 April 2021: Additional information Inventory at 30 April 2021 £000 Raw ma...

See Answer

Q: Proprietors are more interested in cash than profit.’ Discuss.

Proprietors are more interested in cash than profit.’ Discuss. Answer: 1. In the short term, without an adequate cash flow, an entity will find it difficult to survive; in the longer term the acc...

See Answer

Q: Unlike traditional financial accounting, cash flow accounting does not require the

Unlike traditional financial accounting, cash flow accounting does not require the accountant to make a series of arbitrary assumptions, apportionments and estimates. How far, therefore, do you think...

See Answer

Q: Does a statement of cash flows serve any useful purpose?

Does a statement of cash flows serve any useful purpose? Answer: 1. The short answer is ‘yes’ given the importance of monitoring net cash flow. No matter how profitable an entity is in accounting...

See Answer

Q: You are presented with the following information: / Required

You are presented with the following information: Required: (a) Compile Starter’s statement of cash flows for the year ended 31 March 2021. (b) What does it tell the owners of Starte...

See Answer

Q: Lime’s business has had liquidity problems for some months. The following

Lime’s business has had liquidity problems for some months. The following trial balance was extracted from his books of account as at 30 September 2020: Additional information: 1 In...

See Answer

Q: The following is a summary of Gregory Limited’s accounts for the year

The following is a summary of Gregory Limited’s accounts for the year ended 30 April 2021. Additional information: There were no sales of non-current assets during the year ended 30...

See Answer