Reference no: EM132207334
Questions -
1. Explain the purpose of using standard accounting techniques to identify the extent of debt and equity financing.
2. What is likely to be the main problem in achieving the goal of having one set of standards uniformly adopted throughout the world?
3. a. What is meant by ‘fair value'?
b. Why might ‘fair value' be the best method to measure the value of some assets?
c. What assets or types of assets might be measured at ‘fair value'?
d. What other valuation criteria could be used for the purpose of measuring the value of an asset?
4. a. What is meant by ‘off balance sheet' activities?
b. Why could it be important to report them?
5. A distinction is made between financial and prudential reporting. Can you explain the nature of this distinction and why it is important?
6. As a Financial Analyst with an investment advisory firm, your job is to follow the mining industry. In particular, you compare different organisations in this industry to recommend to clients to invest in.
a. What is the basic objective of financial reporting?
b. Briefly discuss some of the types of predictions and related evaluations of performance that you would probably make about the businesses you analyse.
c. State why an analyst might feel more comfortable using information that has been audited by an independent auditor.
7. When working in accounting, identify and list the internal controls procedures that need to be in place to ensure an organisation can meet its strategic goals.
8. Review the characteristic of an effective system of internal control. Include the following in your review:
a. Identify two things an organisation can do to make it harder for a cashier to steal from the business and hide the theft.
b. Explain how each new measure taken by the organisation would accomplish its goal.
9. Why would it be important to monitor the interrelationships between the long and short-term objectives of a business to ensure consistency of returns between operational and investment plans.
10. Explain why you would regularly review tax efficiencies of the financial strategy to ensure an organisation continues to optimise returns from assets.
11. Explain the ethical consideration you will make to ensure you are compliant and your behaviour is in line with financial legislation for example, taxable transactions and statutory reporting requirements.
12. Financial planning is an important part of managing budgets. Why is this the case and provide some examples of techniques used to ensure a plan is in place for the following scenarios:
a. A supplier has had to increase the cost of their product due to the increasing fuel costs.
b. Your initial staffing needs were under-estimated and you have had to hire another worker in the warehouse to keep up with the work load of orders.
c. You have two customers who have not paid their invoice by the due date.
You have sent reminders to both and both have indicated that they will pay next week. This leaves a shortage in your cash flow and means some bills you have cannot be paid.