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Assignment 1

This document contains an assignment for an accounting and finance course. It includes 10 essay questions covering topics like the definitions and differences between financial and managerial accounting, accounting standards, the accounting process, and cost accounting. It also includes a multi-part work-out question involving preparing adjusting entries, a balance sheet, income statement, and closing entries for a sample company. Students are instructed to submit their answers by October 21st via email.

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Abebe Nigatu
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147 views

Assignment 1

This document contains an assignment for an accounting and finance course. It includes 10 essay questions covering topics like the definitions and differences between financial and managerial accounting, accounting standards, the accounting process, and cost accounting. It also includes a multi-part work-out question involving preparing adjusting entries, a balance sheet, income statement, and closing entries for a sample company. Students are instructed to submit their answers by October 21st via email.

Uploaded by

Abebe Nigatu
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Maryland International College

School of Graduate Studies

Accounting and Finance for Managers Assignment


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Full Name (including your Grandfather’s name) :……………………………………

General Instruction

1. Cheating is strictly forbidden.


2. Submission deadline: October 21/2021
3. Send your answers via the email: [email protected]

Maryland International College Page 1


Assignment One on General Overview of Accounting

Part I. Essay Writing Questions

1. Write suitable discussion related to (i) the definitions of accounting and the forms of the
accounting as a discipline and (ii) the similarities and differences of Financial Accounting and
Management Accounting.
2. Discuss the current accounting standards or principles applicable in Ethiopia as a base for
financial statement preparation and presentation.
3. Explain the underlying prescriptions of IFRS
4. Describe five types of business transactions with external parties and another five types of
business transactions from internal sources of a selected form of business company at your
nearby (please indicate the form of company you selected on the answer sheet) and explain
how they are journalized and then reported in the financial statements.
5. Discuss the accounting process as a cycle with a given period by explaining each of the
steps and by giving practical examples.
6. Discuss the components in detail of the following financial statements for a manufacturing
PLC:
a. Statement of Profit or Loss (Income Statement)
b. Statement of Financial Position (Balance Sheet)
c. Statement of Changes in Owners’ Equity
d. Statement of Cash Flows
7. Explain cost accounting and its functions as well the distinguishing features of cost accounting
systems for (a) job order costing, and (b) process costing
8. a. Give suitable explanation on (i) Cost; (ii) Cost Objects; (iii) Cost Driver
b. Discuss the different forms of Cost Classification
9. Discuss (i). the notions and purposes of CVP Analysis, and
(iii) the Components of CVP Analysis (Break-Even Analysis, Target Analysis,
Margin of Safety Analysis, Sales-mix Analysis and others)
10. Discuss what forms of relevant information are applicable for business decisions related to
Make or Buy Decisions, Accept or Reject Special Orders; Continue or Discontinue Business,
and Sell or Process Further, and others

Maryland International College Page 2


Part II. Work-out Questions

Question 1
Some selected balances of DD Co. for year ended Dec-31-2019 are as follows with their
normal balances before adjustments:
Cash and Cash Equivalent Br 20,000 Owners’ Capital 40,000

Notes Receivables 45,000 Retained Earnings 75,000


Office Supplies 12,000 Sales Revenues 640,000
Prepaid Insurance 72,000 Interest Income 12,000
Inventory (Average Cost) 24,000 Cost of Goods Sold 320,000
Fixed Assets 120,000 Selling Expenses 21,000
Accum. Depr- Fixed assets 36,000 Salary and Wages Expense 105,000
Unearned Rent (Liability) 56,000 Rent Expense 15,000
Required
a. Prepare the necessary adjusting entries for the following items as not yet recorded on
Dec-31-2019:
i. The office supplies consumed during the year is Br 8,000
ii. The Unexpired part of insurance is only Br 26,000
iii. Br 30,000 is earned sales revenues from the unearned advance collection
iv. Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000
v. Depreciation Expenses allocated for the year amounts to be Br 15,000
vi. There are accrued interest of Br 8,000 on the notes receivable
b. Prepare the following Financial Statements after adjustments on Dec-31- 2019.
i. Balance Sheet ii. Income Statement
c. Prepare closing journal entries after balances are adjusted and show the final closing of
Income Summary to Retained Earnings

Maryland International College Page 3

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