Task
You are required to complete all questions and submit all necessary workings. Follow the assignment requirements (refer to the Requirements section with assignment 1) above very closely.
Question 1
1.1 Using the Internet as a resource explain the difference between depreciation, depletion, amortisation and impairment. Give examples
1.2 Study Appendix 16A of the text. Why do you think most countries in the world do not permit the use of the LIFO inventory method? Create a simple numerical example to explain your opinion.
Question 2
A. Prepare the December 31, 2016 balance sheet and the 2016 income statement.
Solve using a spreadsheet following the assignment requirements listed in the 'Requirements' section, noting the checklist for all spreadsheets: separate data/report, paste normal view and formula view to a doc file, display row and column headings, IF functions and submit the doc file with the pasted views AND the spreadsheet file to Turnitin Refer to the Spreadsheet Advice document which may help.
B. Create a second version of your spreadsheet, with four changed values selected by you. Highlight the changes
Paste this second version to your doc file. There is no need to paste the formula view again.
Refer to the Spreadsheet Advice PDF found in Resources.
Question 3
Study Appendix 16A in your text.
Create a spreadsheet solution. Check the spreadsheet requirements. Ensure that your data entry and report areas are separate.
Question 4
Watch the set of ABC Learning videos (search for CPA ABC Learning) and answer the following questions (about 400 words in total).
1. Identify and explain 3 ethical issues related to the ABC Learning collapse.
2. What are the major financial reports? What is the purpose of each report?
3. Why are profits important? Why is cash flow important?
4. What are the characteristics of a good internal control system? Use the Internet as a resource for this part of the question. Reference all your sources.
These videos are also available on YouTube beginning here.
www.youtube.com/watch
Question 5
Why is it useful to analyse income statements and balance sheets by ratios? Create three simple examples.
Question 6
Create your own data to calculate four of the following financial ratios in a spreadsheet:
1. Current Ratio
2. Total debt to equity
3. Gross profit rate
4. Return on sale
5. Return on stock holders' equity
6. Earnings per share
7. Price earnings
8. Dividend yield
9. Dividend payout
B. Create two different graph styles to show two of these ratios. Choose from Line graph, 3D column and pie chart. You may need to add data for extra years. The purpose of this question is for you to demonstrate skills in creating graphs (charts) using spreadsheet software. Paste the graph and the data supporting the graph into your answer.
Question 7
Prepare two separate business reports (as if for senior management) on two of the following five topics. Use the Internet as a resource. Length about 400 words for each report not counting appendices or images. Use correct referencing and include a bibliography/reference list. Relate your report to the function of accounting. The Internet can also be used for advice on business report structures.
1. Digital Dashboards.
2. Groupthink
3. 'Predictably irrational' - Dan Ariely
4. The Checklist Manifesto - Gawande
5. Accounting and Impression Management
Where appropriate, incorporate screenshots.
Rationale
This assignment allows students to demonstrate their understanding of Topics 2, 3, and 4, and seeks to assess your ability to be able to construct and analyse accounting reports, research accounting issues, demonstrate spreadsheet skills and apply critical thinking in communicating results. In doing this it is aligned with the following subject learning outcomes:
- To be able to discuss and apply basic accounting ideas that underlie and limit the usefulness of accounting information;
- To be able to explain and analyse the nature, and measurement, of assets, equities, revenues, expenses and income;
- To be able to apply computer software to quantitative business decisions;
- To be able to implement and critique analytic and interpretative techniques used in accounting; and
- To be able to explain and implement financial analysis and management accounting procedures.