Accounting for Non-Accountants 7th. Edition by Graham Mott | 9780749452643 | 0749452641 | Holooly

Accounting for Business

Accounting for Non-Accountants

199 SOLVED PROBLEMS

Question: 3.2

A machine costs £11,000 and has an estimated value of £1,000 at the end of its five-year life. ...

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The straight-line method takes the residual value ...

Question: 9.S-CQ.3

Is there an ideal value for each ratio? If not, how are ratios used? ...

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Very few ratios have an ideal value with the possi...

Question: 9.S-CQ.2

Complete the following equation: Return on capital = profit margin × ……………………? ...

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Return on capital = Profit margin × Rate of turnov...

Question: 15.S-CQ.8

How does activity-based budgeting differ from traditional methods of budgeting? ...

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Traditional methods of budgeting focus on departme...

Question: 16.S-CQ.1

What is meant by a high level of gearing? ...

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High gearing is a large proportion of fixed return...

Question: 19.3

In the balance sheet of EZ Engineering Ltd earlier, there were 500,000 £1 ordinary shares in existence. Let us now assume that the profit after tax was £150,000, in which case: ...

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Earnings per share

=\frac{£ 150,000}{500,0...

Question: 9.7

If a company’s liquid assets are £380,000 and current liabilities are £300,000 then the resulting ratio of more than 1:1 seems satisfactory at that point in time. The exact quick ratio is calculated from: ...

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\text { Quick ratio }=\frac{\text { Liquid ...

Question: 9.3

A company has capital employed of £2 million and annual sales of £4 million.Capital employed has been turned over twice during the year. Another way of expressing this would be to say each £1 of capital has generated £2 of sales. ...

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\text { Turnover of capital }=\frac{\text {...

Question: 9.1

Using sample figures when profit is £1 million, sales are £10 million, and capital is £5 million, then: ...

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Question: 6.4

We will now assume that parent company (P Ltd) owns only 80 per cent of a subsidiary company (S 80% Ltd) which was set up in conjunction with another company who provided the other 20 per cent of the share capital. The relevant balance sheets are now set out in Figure 6.7. ...

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