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American National Curriculum

Accounting

Grade 10 Accounting Questions asked by Filo students

Question 1301

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Business Ethics : Business ethics is a principle of conduct governing the activities of the business. Business should conduct its activities in an ethical manner in order to earn profit and reputation. It helps to decide what is correct and what is incorrect in case of business. Business ethics is codes of principles and values that govern decisions and decision made in the business. To explain: The way the behavior of business affects the customer and the way a customer can protect them against the behavior of the business.

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Question 1302

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Total rate of return of the three investments

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Accounting

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Question 1303

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The time estimation of cash (TVM) is the idea that cash accessible right now is worth more than a similar measure of cash later on because of its potential winning limit. This center guideline of back holds that, if cash can gain premium, any measure of cash is worth progressively the prior it is gotten. TVM guideline says that the estimation of given whole of cash to be gotten on a specific date is more than same total of cash to be gotten on a later date. TVM is additionally alluded to as present marked down esteem. To determine: What is meant by the term time value of money? Solution: The present estimation of the cash isn't the same as it will be later on and the other way around. Thus, it is imperative to know how to figure the TVM, with the goal that financial specialist can recognize the value of speculations that offer you returns at various circumstances. TVM can apply in different routes jump at the chance to locate the present worth of a progression of installments to be gotten intermittently in future, to think about the value of money streams happening at various circumstances in future, to locate the required measure of current speculation that must be made at a given financing cost to produce a required future income, and so forth.

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Question 1304

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Discounting is a budgetary component of deciding the present estimation of an installment or an income that will be gotten later on. Since it is getting late estimation of cash, cash is worth more today than it would be worth tomorrow. Reducing is the essential figure utilized estimating a surge of tomorrow's money streams. To Determine: What is meant by the term discounting? Solution: On the off chance that the estimation of the first installment by and by due is, and the account holder needs to defer the installment for a considerable length of time, at that point a market rate of profit for a comparable venture resource implies the future estimation of P is, and the markdown would be ascertained as Discount = P ( 1 + r ) t − P Here r is likewise the rebate yield. Furthermore, If F is an installment that will be made t years later on, at that point the “present esteem" of this installment, likewise called the “marked down esteem" of the installment, is P = F ( 1 + r ) t To figure the present estimation of a solitary income, it is separated by one or more the financing cost for every timeframe that will pass. This is communicated scientifically as expanding the divisor to the energy of the quantity of units of time. So discounting is a monetary component to decide the present estimation of an installment or an income that will be gotten later on. Since time is running short estimation of cash, cash is worth more today than it would be worth tomorrow. Reducing is the essential calculate utilized estimating a surge of tomorrow's money streams.

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Accounting

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Question 1305

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Discounted cash flow (DCF) strategy for settling on capital planning choice is better than different techniques in light of the fact that dissimilar to other normal capital planning strategies, DCF strategies fundamentally perceive the time estimation of cash and considers all future money streams. To Determine: Why are discounted cash flow method of making capital budgeting decisions superior to other methods? Solution: DCF is a valuation strategy fundamentally used to gauge the allure of a speculation opportunity. Reduced income examination utilizes future free income projections and rebates them to touch base at a present esteem, which is utilized to assess the potential for speculation. Not at all like other normal capital planning techniques, marked down income strategies for the most part perceive the time estimation of cash and considers all future money streams.

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Accounting

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Question 1306

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Discounted cash flow (DCF): is the sum of a series of future cash transactions, on a present value basis. Identify two simplifying assumptions associated with discounted cash flow methods of making capital budgeting decisions.

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Accounting

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Question 1307

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Cost of capital: is the required return necessary to make a capital budgeting project worthwhile. Explain how the cost of capital serves as screening tool when using (a) the net present value method and (b) the internal rate of return method.

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Accounting

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Question 1308

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NPV : is the present value (PV) of all the cash flows (with inflows being positive cash flows and outflows being negative), which means that the NPV can be considered a formula for revenues minus costs. Refer to Exhibit 13-8. Is the return on this investment proposal exactly 14%, more than14%, or less than14%? Explain.

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Accounting

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Question 1309

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-: Payback period meaning and how it is determined and how it is beneficial for the organisation.

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Accounting

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Question 1310

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Variable cost: Variable cost is the cost that changes when the volume of production changes, in the same direction and in the same proportion. Fixed cost: Fixed cost is a cost that remains constant irrespective of changes in the production volume. Product Cost: Product cost is the cost that is incurred in manufacturing or acquiring a product. It includes direct materials, direct labor and manufacturing overhead . Period Cost: Period cost are costs that are not directly related to manufacturing of any products. All costs that are not included in the product cost are called period cost. It generally includes selling expenses, marketing expenses and administrative expenses. Manufacturing cost : Manufacturing cost is the cost of manufacturing a product or goods. Selling cost: Selling cost is a cost that is incurred during marketing and selling the product or goods. Administrative cost: The costs which are not classified under the manufacturing or selling cost comes under administrative cost. 1. To Determine: An answer sheet for the given data with the required column headings Solution: The answer sheet is prepared as below: Cost Item Cost Behavior Period (Selling or Administrative cost) Product cost Variable Fixed Direct Indirect Direct labor

118, 000

118,000 Advertising

50, 000

50,000 Factory supervision

40, 000

40,000 Property taxes, factory building

3, 500

3,500 Sales commissions

80, 000

80,000 Insurance, factory

2, 500

2,500 Depreciation, administrative office equipment

4, 000

4,000 Lease cost, factory equipment

12, 000

12,000 Indirect materials, factory

6, 000

6,000 Depreciation, factory building

10, 000

10,000 Administrative office supplies (billing)

3, 000

3,000 Administrative office salaries

60, 000

60,000 Direct materials used (wood, bolts, etc.)

94, 000

94,000 Utilities, factory

20, 000

20,000 Total Cots

381, 000

197, 000

94, 0002. T o C o m p u t e : T h e a v er a g ecos t o f o n e p a t i ose tS o l u t i o n : T h e a v er a g ecos t o f o n e p a t i ose t i s a s b e l o w : He n ce, t h e A v er a g ecos t o f o n e p a t i ose t i s

153. 3. To Find: At the production level of 1000 sets, the average production per set will increase, decrease or remains unchanged Solution: At the production level of 1000 set, average product cost per set would be increased because of the fixed product cost would be spread over less number of sets resulting in the average cost per units increases. 4. a. To Discuss: The price disagreement between the two men and identify the prices they expect. Solution: a. Yes, there is price disagreement between the two men. The president may expect the least price of

153 p a t i ose t, w hi c hi s t h e a v er a g ecos tt o p ro d u ceo n ese t . T h e b ro t h er - in - l a w i s p oss ib l ye x p ec t in g t h ecos t in c l u d in g o n l y d i rec t ma t er ia l s an dd i rec tl ab or . D i rec t ma t er ia l s an dd i rec tl ab or w o u l d b eo n l y

106 per set. ($212000/2000) b. To Discuss: The cost term based on the provided data Solution: The cost term will be called opportunity cost. Since, the company is operating at full capacity, the regular price of a patio set might be appropriate here, because the company will lose this profit if it sells the products at the cost as expected by the brother-in-law.

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Question 1311

Views: 5,454

EXERCISE 14-2 Net Cash Provided by Operating Activities LO14-2 For the just completed year, Hanna Company had net income of

35, 000. B a l an ces in t h eco m p an y^{'} sc u rre n t a sse t an d c u rre n tl iabi l i t y a cco u n t s a tt h e b e g innin g an d e n d o f t h eye a r w ere a s f o ll o w s : Dece mb er 31 E n d o f Y e a r B e g innin g o f Y e a r C u rre n t a sse t s : C a s han d c a s h e q u i v a l e n t s

40, 000 A cco u n t srece i v ab l e

106, 000 I n v e n t ory

180, 000 P re p ai d e x p e n ses

7, 000 C u rre n tl iabi l i t i es : A cco u n t s p a y ab l e

195, 000 A ccr u e d l iabi l i t i es

6, 000 I n co m e t a x es p a y ab l e

30, 000 T h e A cc u m u l a t e d De p rec ia t i o na cco u n t ha d t o t a l cre d i t so f

20 , 000 during the year. Hanna Company did not record any gains or losses during the year. Required: Using the indirect method, determine the net cash provided by operating activities for the year.

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Accounting

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Question 1312

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Cash Flow : In a specific period of time the amount of cash disbursed or received with regards to a particular activity is called cash flow. Free Cash flow : Free cash flow is the amount that remains with the company which helps to operate it in a planned way after deducting the funds from the company. the total cash flow and free flow cash flow of C Co.

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Accounting

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Question 1313

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Products costs refer to the cost incurred by the firm to produce a product or render a service. It includes expenses such as labor, raw material, manufacturing overheads , consumable supplies, etc. The types of product cost involved in the production of the product in a manufacturing concern is to be determined.

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Accounting

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Question 1314

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Operating Cash Flow: Operating Cash Flow is the type of cash flow where the cash is given or received in the course of routine business operations of a company. Free Cash Flow : Free cash flow is the amount that remains in the company which helps to operate it in a planned way after deducting the funds from the company. Determine the operating cash flows , total cash flows and free flow cash flows of Joyner Company. Explain the reason for the fall in cash balance in year 2 as compared to year 1.

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Accounting

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Question 1315

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Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received under different activities, i.e., Operating, Investing and Financing Activity, is called cash flow statement. the purpose of the cash flow statement.

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Accounting

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Question 1316

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Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received under different activities, i.e., Operating, Investing and Financing Activity, is called cash flow statement. the purpose of the cash flow statement.

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Accounting

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Question 1317

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Explain the difference between a product cost and a period cost.

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Accounting

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Question 1318

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Cash Flow Statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called cash flow statement. Provide the general guidelines for interpreting the statement of cash flows

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Accounting

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Question 1319

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Free Cash Flow : Free cash flow refers to the amount that remains in the company which helps to operate it in a planned way after deducting the funds from the company. Operating Cash Flow: The cash inflow or outflow involved in the operations of the business are reported as operating cash flow. The difference between operating cash flows and free cash flows.

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Accounting

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Question 1320

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Cash Flow: The amount of cash disbursed or received with regards to a particular activity in a specific period of time is called cash flow. Explain whether the statement of a business executive is correct or not − .Depreciation is one of our biggest operating cash flows ..

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Accounting

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