You can download the sample Finance Resource essay on Accounting for Managers with the following question for free at the end of this page. For further assistance with Finance Assignment help, please check our offerings in Finance assignment solutions. Our subject-matter experts provide online assignment help to Finance students from across the world and deliver plagiarism free solution with a free Turnitin report with every solution.
(AssignmentEssayHelp does not recommend anyone to use this sample as their own work.)
Accounting Assignment Question
QUESTIONS 2 (5 MARKS)
In relation to recent corporate crashes, what have been the main lessons/faults associated with the accounting information system and/or process? Explain
Question 3 (10 marks)
For each of the following items, state whether it is either;
Revenue or Expense or Asset or Liability or Equity.
- A loan to another company
- Shares issued to the public
- Inventory purchased last week
- Depreciation of equipment
- Provision for long service leave
- Excess payment to the tax department
- Shares owned in another company
- Accounts payable
- Prepaid insurance premiums
- Deposit paid by a customer for work yet to be done
- Credit sales
- Cash sales
- Retained profit
- Advertising
- Bad debts
- Dividend declared, not yet paid
- Singed a contract for a $300,000 building
- Undertook basic research for $40,000 on a new product
- Delivered goods to a customer related to credit sales contract
- Special staff training program related to new regulations cost $10,000
- Cash purchase of a new computer for $23,000
- Paid initial payment of $5,000 related to the financial lease of a bus
Accounting Assignment Solution
Question 1
Profitability Ratios
The profitability ratios are determined to measure the operational efficiency or profitability of the firm. With the help of these ratios, the final decision is taken for business operations (Laux & Leuz, 2009). It is one type of financial metrics that are used to determine the ability of business for generating income with compare to its expenditure as well as other costs that were used in the business operations within a specified time. If values of these ratios are higher relative to the same ratio or a ratio of a competitor as compared to the previous period, it is indicative that the performance of the company is well going on (Magnan, 2009).
- Gross profit margin:
This ratio is used to measure the profitability of the product. This ratio comes under the profitability ratios category (Weygandt, 2009). It is calculated by dividing gross profit by sales. Gross profit is calculated by differencing the cost of sales from sales. Profit margin is represented in terms of percentage. Gross profit margin can be represented in formula-based:
Gross profit margin= (gross profit/sales)*100
For 2014, Gross profit= $1440 and sales=$3600
Gross profit margin= (1440/3600)*100=40%
For 2105, Gross profit= $1590 and sales=$3840
Gross profit margin= (1590/3840)*100= 41.41%
WhatsApp Us