Accounting for Non-Accounting Students 6th. Edition by John R. Dyson | 9780273683858 | 0273683853 | Holooly

Accounting for Business

Accounting for Non-Accounting Students

121 SOLVED PROBLEMS

Question: 12.1

Interpreting company accounts You are provided with the following set of amended published accounts relating to A.G. Barr plc, the makers of the well known soft drink Irn-Bru. A.G. Barr plc. and its Subsidiary Companies Consolidated Profit and Loss Accounts ...

Verified Answer:

Significant accounting ratios A.G. Barr plc ...

Question: 1.A.2

Insert the missing words in each of the following sentences: (a) The word _ in everyday language means an explanation or a report. (b) Traders in the fifteenth century began to adopt a system of to record information. (c) The owners of a business want to know how much ___ ...

Verified Answer:

a) account; b) double-entry book-keeping; c) profi...

Question: 19.TQ.4

The following information relates to Pole Limited for the year to 31 January 2007. ...

Verified Answer:

Contribution analysis for Pole Ltd Pole Limited Ma...

Question: 8.TQ.5

The following balance sheets have been prepared for Frank Limited: ...

Verified Answer:

Frank Ltd’s accounts: Frank Limited Cash flow stat...

Question: 19.A.8

Attempt Example 19.8 without looking at the answer. Then prepare (a) a break-even chart; and (b) a profit/volume chart. ...

Verified Answer:

(a) Break-even chart (b) Profit/volume graph

Question: 21.A.2

Assuming a rate of interest of 15% per annum, what is the present value of £200 receivable in two years’ time? ...

Verified Answer:

£151.22 (£200 × 0.7561).

Question: 19.A.5

You are presented with the following data: number of units sold 5000; sales revenue £50 000; variable costs £25 000, fixed costs £10 000. If the company wanted to make the same amount of profit, how many units would have to be sold if the fixed costs rose to £15 000? ...

Verified Answer:

The contribution per unit is £5 (£50 000 – 25 000/...

Question: 19.A.4

Rearrange the following data in a marginal cost format. Annual rent £3000; direct labour £20 000; direct material £10 000; sales £75 000; staff salaries £47 000. ...

Verified Answer:

£000 £000 75 Sales Less: variable costs ...

Question: 19.A.2

Company M’s annual sales were £100 000, its variable costs £40 000, and its fixed costs £50 000. Calculate the profit for the year using the marginal cost equation. ...

Verified Answer:

S – V = F + P so £100 000 – 40 000 = 50 000 + 10 0...

Question: 13.A.5

A building has now been under construction for three years. It is expected to be completed in two years’ time. The agreed contract price is £500,000. The costs to date are £300 000 and it is expected that another £100 000 will be spent on the building before it is completed. What profit would you ...

Verified Answer:

The expected profit on the contract is now £100 00...

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