PART AAnswer ALL questions.
1.Accountancy is the art of communicating financial information about a business entityto users. The communication is generally, in the form of financial statements whichincludes five (5) statements.
State and describe any
of the statements.(8 marks)
Explain the following
accounting principles that need to be followed whenpresenting financial statements in accordance to Financial Reporting Standards(FRS) 101 Presentation of Financial Statements:
Payback period and net present value (NPV) are among the common techniques thatare used for capital budgeting. Discuss each of these techniques.(6 marks)
Management accountant must be able to justify any kind of cost as either direct or indirect. Distinguish between direct and indirect cost. Please provide
examples of each cost.(4 marks)
Break-even analysis or cost volume profit relationship as it is also known isconcerned with relationships between cost, volume and profit. Briefly explain
uses of break-even analysis.(4 marks)5.MIA By-Laws (on professional ethics, conduct and practice) provides a set of principles and rules that offer guidance to the members. Explain the followingfundamental principles stipulated under the by-laws:a.Professional competence and due care(4 marks)b.Confidentiality(4 marks)
Financial analysis is the assessment of a firm’s past, present and anticipated futurefinancial performance that is made based on the firm’s financial statements. Explain
purposes of analyzing the financial statements.(3 marks)
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