Accounting II questions
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updated 22.5.2000 including only Acconting II questions:
Kaplan & Atkinson 19.5.2000:
1. What is the advantage of assigning service department costs to production departments ?
2. What is Activity Based Costing system ABC ? What is the difference with traditional accounting system ?
3. What is the difference between ROI and Residual Income ? What are the advantages of residual income in measuring deparmental performance ? What is Economic Value Added EVA ?
4. What is Balanced Scorecard ? What are the 4 perspectives ?
Accounting , Atrill , 10.11.1999 UPDATED 5.9_
1) What kind of criticism has been made against historical cost
accounting? What benefits and drawbacks does accounting based on current
cost accounting have?
2) What are the main characteristics of a company which is legally
separated from those, who own it ( limited company)? Seen from an
economic point of view, what are the benefits with a limited company?
What kind of safeguards will a limited company have to give to those
dealing with this company?
3) a) What information can a analyst obtain from the cash flow
statement?
b) How can you use information from the profit and loss account and the
balance sheet to deduce the cash inflow from operations ( The indirect
method)?
4) Calculate the most important ratios from the enclosed financial
statements for the year 1997. What can you conclude, from the ratios you
have calculated, about the company?
Accounting Atrill, 26.11.1999
1 . Describe briefly the financial statements and what they are used for.
Desricribe briefly the structure of the balance sheet.
What is goodwill and where can you find it in the statements.
2. Why do companies depreciate?
Describe different depreciation methods.
3. a) What are International accounting standards? Why are they used?
What kind of problem can occur?
b) How can the shareholders be sure that the financial statements,
which the directors had done, are reliable?
4. Calculate financial rations from the statements enclosed and evaluate
the results.