Differences between financial and management accounting

Assignment Help Managerial Accounting

Reference no: EM132539974

Question 1 Identify and describe five differences between Financial and Management Accounting.

Question 2 2a) In your own words, identify and describe the 4 forms of business organisations: Sole Proprietorship, Partnership, Company and Trust.

2b) What is "ethics"? Why is it so important for Accountants to have high ethical values?

Question 3
Prepare a journal for the following November 2019 Transactions.
Nov 1 Shareholders invested $80,000 cash in exchange of shares.
Nov 5 Invoiced customers for services performed $13,500
Nov 7 Paid office rent for the month $3,250
Nov 9 Paid $4,210 owed to Speedo Candy Ltd
Nov 10 Paid employee salaries $5,500
Nov 13 Received $10,200 cash for services completed for P. Doogle
Nov 17 Received $2,800 cash from customers on account
Nov 22 Paid $6,800 to creditors on account
Nov 29 Paid $2,200 cash dividend
Nov 31 Paid electricity $1,800

Question 4
Skinny Pty Ltd reported the following current assets and current liabilities at the end of 2011 and 2012:

	2012	2011
Cash	15,000	18,000
Marketable Securities	18,000	15,000
Accounts Receivable	92,000	74,000
Inventories	84,000	70,000
Prepaid Expenses	23,000	35,000
Short-term Borrowings	135,000	88,000
Creditors	112,000	145,000
Income Taxes Payable	23,000	20,000

a) Determine for both years (round to 2 decimal places). Please show working.
i) Working Capital = Current Assets - Current Liabilities
ii) The current ratio. = Current Assets / Current Liabilities
iii) Debt to total assets ratio = Total Liabilities / Total Assets

b) Was Skinny Pty Ltd in a better (or worse) position in 2012 than 2011? Why?

c) Would you have invested in Skinny, if so why and why not?

Question 5

Calculate Cash provide by Operating Activities - Direct Method

The 2019 accounting records of Indoor Ltd reveal the following transactions and events.

Payment of Interest $12,000	Collection of accounts receivable $72,000
Cash Sales $60,500	Payment of salaries and wages $59,000
Receipt of dividend revenue $13,000	Depreciation expense $22,000
Payment of income tax $15,000	Proceeds from sale of vehicle $187,000
Profit $42,000	Purchase of equipment for cash $23,000
Payment of accounts payable for inventory $120,000	Loss on sale of equipment $5,000
Payment for land $84,000	Payment of dividends $19,000
	Payment of operating expenses $22,300

Required: Prepare the cashflows from operating activities section of the statement of cashflows using the direct method. (Not all of the items will be used).

Reference no: EM132539974

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