Questions from Financial Accounting

Q: Explain the meaning of each of the following in the context of

Explain the meaning of each of the following in the context of statements of cash flows: a. cash; b. cash equivalents.

Q: List and describe the contents of the three headings/groups of

List and describe the contents of the three headings/groups of items found in a statement of cash flows prepared in accordance with IAS 7.

Q: Explain the purpose, uses and advantages of classified statements of cash

Explain the purpose, uses and advantages of classified statements of cash flows prepared in accordance with IAS 7.

Q: Explain the difference between the direct and indirect methods of ascertaining the

Explain the difference between the direct and indirect methods of ascertaining the ‘net cash inflow from operating activities’ shown in a statement of cash flows.

Q: For many years, company financial statements consisted of a statement of

For many years, company financial statements consisted of a statement of financial position and a statement of profit or loss prepared using the accruals basis. Many also have to include a statement o...

Q: Explain what each of the following is intended to measure:

Explain what each of the following is intended to measure: a. return on capital employed; b. profit margin; c. asset-turnover ratio; d. working capital and liquidity ratios; f. average period of credi...

Q: Examine the empirical evidence relating to the predictive ability of accounting ratios

Examine the empirical evidence relating to the predictive ability of accounting ratios with regard to insolvency.

Q: J. Ballantine has the following opening balances on her ledger accounts

J. Ballantine has the following opening balances on her ledger accounts: The following transactions take place during the reporting period. 1. Bought desks for £500 by debit card 2. Pai...

Q: Explain what each of the following is intended to measure:

Explain what each of the following is intended to measure: (a) dividend yield; (b) dividend cover; (c) earnings per share; (d) price–earnings ratio; and (e) return on equity.

Q: a. Explain what is meant by capital gearing/leverage.

a. Explain what is meant by capital gearing/leverage. b. Why might this influence a prospective investor’s decision concerning whether or not to buy equity shares in a company?