Accountancy & Auditing, Paper I

Why Accounting is referred to as "Business Language"? What are the Functions of Accounting?

What factors influence International Accounting practices? What forces are leading to the global convergence of accounting practices?

Explain the difference between the terms 'Liquidity' and 'Solvency' when used in Ratio Analysis?

ABDC Corporation has following inventory: Beginning Inventory 100 units @ 8.00 = 8.00 = 8.00 = 800 Purchase #1 200 units @ 6.00 = 1,200 Purchase #2 100 units @ 12.00 = 1,200 Total 400 units $3,200 Use the information to answer the following questions.

Ali setup his own catering business on 1st July 2015. During the 12 months upto 30th June 2021 the following transactions occurred: John put $10,000 of his own money into the business. He borrowed$20,000 from the bank for one year at 5 percent per annum, with interest to be paid at the end of the loan. He paid 10 , 400 i n w a g e s a n d o w e d 10,400 in wages and owed 10 , 400 in w a g es an d o w e d 3000 in wages for work done. He bought catering equipment for $6000, which has an expected useful life of three years. He paid other expenses of$12,300. John sent bills for $60,000 to customers for work performed between 1st July 2015 and 30th June 2016. By 30th June he had received 45 , 000 a n d e x p e c t e d t h e o t h e r 45,000 and expected the other 45 , 000 an d e x p ec t e d t h eo t h er 15,000 by August. Using the concepts of accrual accounting, calculate John's profit for the year ended 30th June, 2021.

What is the best use for the cash on the Company's Balance Sheet? How does the Company plan to raise capital in order to fund future growth?

Write short notes on the following: