Explain appropriately key concepts, principles, relationships, and procedures of the financial statement

Textbook

• Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2011). Intermediate Accounting, IFRS Edition. Hoboken, NJ: John Wiley & Sons, Inc. ISBN-978-0-470-1630-7.

• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
•
Submissions without this cover page will NOT be accepted.
Assignment Question(s): Marks 15 Chapter 1 to 5
Q1 Globalization demands a single set of high-quality international accounting standards. List
the elements of High Quality Standards and explain the two major boards that sets standards.
Answer: 3 Marks
Q2. Q2. What do you understand by deferrals and accruals in adjusting entries? Give
numerical examples on how such adjusting entries are made.
(4 Marks)
Answer:
Q3. Fill in the blanks (1 Mark)
Sales Revenue
– Cost of goods sold
500,000
?
?
305,800
=
Gross
Profit
175,000
?
– Operating
expenses
?
115,750
=Net Profit
76,500
65,250
Answer:
Sales Revenue
– Cost of goods sold
500,000
= Gross Profit
Operating
expenses
175,000
305,800
115,750
=Net Profit
76,500
65,250
Q4. a. What do you understand by allocation to non-controlling interest and discontinued
operations? Explain how they are reported in the income statement. (2 Marks)
Amswer:
Q4b. Intraperiod Tax Allocation.
XYZ Co. has income before income tax of SR 50,000. XYZ Co. has a gain of SR 10,000 from a
discontinued operation. Assuming a 35 percent income tax rate, how would XYZ Co. present the
information on the income statement, and if it had a loss of SR 10,000 from a discontinued operation.
Assuming a 35 percent income tax rate, show the changes in Income on the income statement
(2 Marks)
Prepare:
1. Changes in Income on the income statement when Loss made from discontinued operations
2. Changes in Income on the income statement when Gain made on discontinued operations
Answer:
Q5
The following information in SAR. Prepare a Cash Flow Statement:- (3 Marks)
Opening Cash Balance
15,000
Closing Cash Balance
23,000
Increase in current liabilities
13,000
Decrease in current assets
17,000
Fixed assets purchase
30,000
Redemption of 12% bonds
14,000
Profit for the year
18,000
Depreciation
4000
Answer: