You are faced with the following situations. Use the Langenderfer and Rockness model to help determine the course of action you would take. (a) You are a manager within a large entity and need to make a recommendation to the CEO on which tender to accept. The job being tendered for is worth millions of dollars and you have a significant share in one of the companies tendering. (b) You are a small-business owner who wants to enter an overseas market. You arrange to meet with a government official of the country you wish to do business with in order to discuss your market entry. To be successful, you really need his support. During the discussion, you realise that he expects a monetary payment in exchange for his help.
> Illustrate with an example the difference in the format of the equity section of the statement of financial position between a sole trader, partnership and company.
> What are two major advantages and disadvantages of a company structure? Provide an illustration with a company listed on the ASX (such as JB Hi-Fi Ltd, CSL Ltd, BHP Billiton Ltd).
> Explain with examples the major differences between a company limited by shares (such as JB Hi-Fi Ltd) and a proprietary company (such as Coconut Plantations Pty Ltd).
> Distinguish between personal transactions and business transactions. Illustrate with five examples of each.
> You are a friend of Penny Williams, who is thinking about starting a business to sell her personalized embroidered towels. Advise Penny on the four factors that should be considered before deciding what form of business structure to operate under.
> Compare and contrast the views of Hobbes with those of Smith and Friedman.
> The following account balances, dated 30 September 2020, are of sole trader Victoria Stone (Stone Bike Hire): capital (V Stone) $108 125; hire revenue $45 000; bike maintenance $10 000; administrative expense $5000; rent expense $2750; wages $10 000; int
> Teddy Thomas, a real estate agent, requires you to prepare a statement of profit or loss for the period ended 31 December 2020: donations $120; office wages $8400; sales salaries $30 000; sales commission expense $6000; advertising $4800; rent expense $2
> From the following information for sole trader J Pfahlert, software designer, draw up a statement of financial position as at the end of the financial year (30 June 2020). You are also required to determine the amount of owner’s capital: accounts payable
> Go to the Business Queensland website (www.business.qld.gov.au) and select ‘Starting a business’, then ‘Business types and legal structures’. Next select ‘Setting up a legal business’ under the heading ‘Business legal structures’. List the various consid
> Go to the ASX website (www.asx.com.au). In the search window, type ‘listing with ASX’. What are the key benefits of listing according to the ASX?
> Lou and Stu are sole traders who run their own separate businesses providing accounting and bookkeeping services. On 31 December 2019, their individual statements of financial position show the following accounts. Starting in 2020, Lou and Stu have agre
> Refer to the JB Hi-Fi Ltd consolidated statement of financial position in figure 3.3 to answer the following questions. Figure 3.3 (a) What is the major difference between the format of this statement and that of a partnership? (b) List two current asse
> Refer to the JB Hi-Fi Ltd statement of profit or loss in figure 3.2 to answer the following questions. Figure 3.2 (a) What is the major difference between the format of this statement and that of a sole trader? (b) What do you think is the purpose of th
> Explain what a transposition error is and identify how you can detect that one has occurred.
> Using the information shown in exercise 3.30, produce a statement of profit or loss for the period ended 30 September 2020. In exercise 3.30 Presented below are financial statement items for Jupiter Planet (a sole trader) for the period ended 30 Septemb
> Presented below are financial statement items for Jupiter Planet (a sole trader) for the period ended 30 September 2020. Determine which items should appear in the statement of profit or loss and which items should appear in the statement of financial po
> Jenny and Margaret agree to form a partnership on 16 September 2020 to supply first-aid kits to motor vehicle dealers. They agree on the following market values given to them by an independent valuer. • Jenny’s contribution: – Cash $10 000 – Inventory $1
> Produce the shareholders’ equity section of the statement of financial position for Geelong Davis Ltd, a public company. Use the following information: share capital (200 000 $1 ordinary shares and 30 000 $4 preference shares, all fully paid up); profit
> From the six scenarios described below, indicate (giving your reasons) the business form each one is likely to take — sole trader, partnership, company or trust. (a) Conor and Ella wish to start an internet business marketing cosmetics. They are concerne
> Didi, a sole trader operating a small landscaping business, asks you to prepare her statement of financial position (showing her equity) for the year ended 30 June 2020: contributed capital $26 440; profit $5600; drawings $3600; cash $36 000; fixtures an
> What is risk management and why is it included in the ASXCGC Corporate Governance Principles and Recommendations?
> Identify and discuss five fundamental principles of the Code of Professional Conduct.
> What is an IFRS and how does it impact on standard setting in Australia?
> How do accounting standards assist large companies?
> Describe the structure of corporate governance as put forward by Farrar.
> Comment on the approach put forward by The Ethics Centre in deliberations of an ethical issue.
> Briefly describe how the AASB develops accounting standards.
> Explain the relationship between the Australian Accounting Standards Board (AASB) and the International Accounting Standards Board (IASB).
> Are ethics and corporate governance important topics in the study of accounting and the business environment? Why or why not?
> ‘Complying with the law will always mean that you are acting ethically.’ Discuss this statement.
> 1. A business organised as a separate legal entity that is owned by shareholders is a: (a) Family trust. (b) Company. (c) Sole trader. (d) Legal partnership. 2. The shareholders’ equity section of the statement of financial position for a public company
> What do the following terms mean? (a) Unlimited liability (b) Mutual agency (c) Dividend (d) Preference shares (e) Unit trust
> What are the major differences in equity funding between a partnership and a public company?
> Differential reporting is applicable to which entities? Name four areas where the reduced disclosure requirements apply.
> Go to the ATO website (www.ato.gov.au) and provide a definition for each of the following. (a) Pay as you go (PAYG) (b) Capital gains tax (CGT) (c) Goods and services tax (GST) (d) Tax file number (TFN) (e) Wine equalisation tax (WET)
> Differentiate between financial and management accounting. Give an example of how a management accounting report would be incorporated into financial accounting reports.
> It is important that partners draw up a partnership agreement. What details should be specified in this agreement?
> Illustrate with an example how sole traders and partners are taxed in Australia. What are the advantages and disadvantages compared to paying company tax?
> Compare and contrast the roles of the Financial Reporting Council (FRC) and the Australian Securities Exchange (ASX).
> Discuss whether an accountant should take on an appointment outside their area of expertise.
> What are the benefits of professional association membership for accounting graduates?
> One of the limitations of accounting information is the historical nature of the financial reports. Provide an example of an asset from the statement of financial position of Qantas Group where the asset’s historical cost may not reflect its current valu
> Outline the major maxims of Kantianism and describe what they mean.
> What is the relationship between the AASB and international standard-setting bodies such as the IASB?
> Compare and contrast teleological theories and deontological theories. Discuss whether you think these theories have a place in modern business society.
> Give an example of the role accounting information plays in the investment planning for a retired footballer and a retired schoolteacher.
> What is a business transaction and how does it relate to the accounting process? Illustrate the concept of a business transaction with five examples relating to an SME such as a provider of Chinese therapeutic massages.
> You are an accountant with XYZ Ltd and are confronted with the situations described below. State in each case whether there has been a breach of the APES 110 Code of Ethics for Professional Accountants. (a) You are appointed the auditor of Jones Ltd, a s
> Every time there is a spate of corporate collapses, the accounting profession has been closely scrutinised and many members of the professional bodies have appeared before disciplinary hearings. The professional bodies publish a professional conduct annu
> As the director of a company, you need to make a decision regarding whether to shift the manufacturing operations offshore. Over recent years, the influx of cheap imports has made it harder to compete on a cost basis. However, shifting the operations off
> Comment on the following situations in relation to the ASX CGC Corporate Governance Principles and Recommendations. (a) A member of a board of directors insists on being involved in the employment of personnel. (b) The auditor of a company is the brother
> Your client MJM Ltd consults with you in relation to the new financial information system that it wishes to have installed. You are technically competent in this area, and so accept the engagement. You carry out an analysis of software available and make
> Members of the two accounting professional bodies, CPA Australia and the Chartered Accountants of Australia and New Zealand (CAANZ), have to comply with the APES 110 Code of Ethics for Professional Accountants. This code lists several possible threats to
> Outline some of the legal constraints in legislating for the consideration of stakeholder interests.
> I put it to you that the directors are responsible to the shareholders for profit in perpetuity; and that this general expression of a principle permits, indeed requires, directors to pay full regard to their employees, to labour relations generally, to
> Describe the relationship between the revised Conceptual Framework and the accounting standard AASB 116 Property, Plant and Equipment.
> The directors of Carlos Ltd provide you with the following financial information for the period ended 30 September 2019: selling expenses $96 000; occupancy expenses $12 000; finance expenses $26 400; loss due to legal action $5400; administrative expens
> CPA Australia and CAANZ have designated areas on their websites for technical resources and updates. Go to each of the respective bodies’ websites (www.cpaaustralia.com.au and www.charteredaccountantsanz.com) and summarise the resources provided.
> A survey conducted by PricewaterhouseCoopers in 2018 shows that 45 per cent of organisations experienced customer fraud in the last two years. Likewise 43 per cent suffered a cyber-attack. The most common types of cyber-attacks were: phishing (48%), malw
> The AASB, as part of its work program, offers comment on documents such as proposed agenda decisions, exposure drafts, draft exposure drafts, invitations to comment and discussion papers. Go to the ‘Work in Progress’ page of the AASB website at www.aasb.
> There are at least 60 Australian Accounting Standards. Go to the AASB website at www.aasb.gov.au and choose one. (Hint: Go to ‘Quick Links’ and select ‘Table of Standards’.) One of the recent accounting standards is the standard on fair value measurement
> What is the difference between business ethics and social and environmental responsibility?
> Compare and contrast the professional code of ethics for individuals and the guidelines for corporations.
> Outline the legal duties that directors have to their company.
> Outline the corporate governance principles and recommendations.
> Explain: (a) Triple bottom line reporting (b) Corporate governance (c) The relationship of stakeholders to corporate governance.
> Give some examples of each of Carroll’s four key responsibilities of business. Have any of these changed from one responsibility grouping to another over the last decade?
> Ping and Juno decide to form a partnership on 30 June 2020. They secure the services of Timothy Legal to draw up their partnership agreement as follows. 1. Ping is to contribute: • His car, the fair value of which is $32 000 • Property with a book value
> In your own words, explain the advantage of comparability and transparency of financial information due to the adoption of IFRS.
> What is the impact of the qualitative characteristic of ‘materiality’ on the preparation of the financial statements?
> What are the four key responsibilities of business? Do you think an entity should consider discretionary responsibilities? Why or why not?
> Describe the major purpose of the ASX. What types of information does it provide for a novice investor?
> How can the professional accounting bodies assist in standard setting?
> Imagine that you are a manager in a large entity and need to make a recommendation to the CEO on which tender to accept. The job being put out to tender by the entity is worth millions of dollars and you have a significant ownership share in one of the c
> What is the difference between the revised Conceptual Framework’s fundamental qualitative characteristics of relevance and faithful representation? Can you think of any trade-offs between relevance and faithful representation?
> What are the challenges associated with digital disruption for accountants?
> What is stakeholder theory and how is it related to corporate governance?
> Jackie Smith is considering purchasing a sushi bar in the inner Melbourne suburb of Albert Park. Outline the importance of a business plan for Jackie and the type of accounting information she will require to assist her in making the decision.
> (a) Explain the advantages and disadvantages of the sole trader form of business structure compared to the partnership form of business structure. (b) Summarise the differences between a service and a manufacturing company. (c) Compare the liability requ
> (a) Discuss the difference in the role of the journal and the ledger in capturing accounting information efficiently and effectively. (b) Outline the entity concept and how it impacts on the recording of personal and business transactions. (c) Identify t
> Compute the numbers. 6-1
> Describe the domain of the function. f (t) =1 / √t
> Compute the numbers. (1 / 125)1/3
> The boiling point of tungsten is approximately 5933 Kelvin. (a) Find the boiling point of tungsten in degrees Celsius, given that the equation to convert x°C to Kelvin is k(x) = x + 273. (b) Find the boiling point of tungsten in degrees Fahrenheit. (Tu
> Compute the numbers. (.000001)1/3
> Compute the numbers. (27)1/3
> Compute the numbers. (16)1/2
> Compute the numbers. (.01)3
> Let f (x) = 3√x and g(x) = 1 / x2. Calculate the following functions. Take x > 0. f (g(x))
> Let f (x) = x / x - 2, g(x) = 5 – x / 5 + x, and h(x) = x + 1 / 3x - 1. Express the following as rational functions. f (x + 1) g(x + 1)
> Let f (x) = x2 - 2x, g(x) = 3x - 1, and h(x) = √x. Find the following functions. f (x)g(x)
> Use intervals to describe the real numbers satisfying the inequalities. x < 3
> Compute the numbers. -42
> Find an equation of the given line. Horizontal through (√7, 2)
> Find an equation of the given line. Slope is -2; x-intercept is -2
> Exercises 43–46 relate to Fig. 13. When a drug is injected into a person’s muscle tissue, the concentration y of the drug in the blood is a function of the time elapsed since the injection. The graph of a typical time&
> Find an equation of the given line. Slope is 2; x-intercept is -3
> Let f (x) = x6, g(x) = x / 1 - x, and h(x) = x3 - 5x2 + 1. Calculate the following functions. f (h(x))
> Evaluate each of the functions in Exercises 37–42 at the given value of x. f (x) = |x|, x = -2/3
