accounting for business(bachelor)
surajrocky
accountingforbusiness.pdf
HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION
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Assessment Details and Submission Guidelines
Trimester T1 2019
Unit Code HC1010
Unit Title Accounting for Business
Assessment Type Individual Assignment
Assessment Title Financial Statements Elements and Financial Statement Analysis
Purpose of the assessment (with ULO Mapping)
Students are required to apply knowledge learned in class and perform independent
research of the key topics.
Learning Outcomes:
Familiar with and readily able to access (refer to) and integrate across: o The social role and purpose of accounting o The accounting equation and how it shapes the financial statements o General Purpose Financial Statements (GPFS) o Special Purpose Financial Statements (SPFS)
Understand how to prepare, analyse, and interpret financial ratios from GPFS
Obtain and contextualise business information for business accounting to explain and apply to business decisions
Demonstrate the ability to apply, analyse, synthesise and evaluate information from multiple sources to make decisions about the financial performance of entities including assets, liabilities, owner’s equity, revenue and expenses
Apply concepts and theories discussed on a weekly basis
Use transaction data and financial statement analysis for data-driven decision- making
Demonstrate the ability to communicate accounting information writing to a professional standard
Weight 20% of the total assessments
Total Marks 20 marks
Word limit 1000 words
Due Date 11.59pm Friday, Week 10 (Block mode 1 class – Friday in Week 8; Block Mode 2 class – Friday in Week 11)
Submission Guidelines
All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page.
The assignment must be in MS Word format, single spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.
Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Harvard referencing style.
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HC1010 Accounting for Business
HC1010 Assignment Specifications Purpose: This assignment aims to reinforce and extend students’ knowledge and understanding of key topics in this course (HC1010) including: Statement of Financial Position, Statement of Financial Performance, Cash Flow Statement, Financial Statement Analysis, Accounting for Business Transactions through independent research and application of knowledge and skills. Assignment details: PART A Financial Ratios and Financial Statement analysis (6 marks) The following financial data relate to Big Bang Pty Ltd for the years ended 30 June Year 2019 and 30 June Year 2018.
Financial item 30 June Year 2019 Year 2018
Net credit sales Cost of goods sold Cash Accounts receivable Inventory Current liabilities
$630 000 290 000
18 000 70 000
130 000 105 000
$490 000 250 000
12 000 60 000
150 000 81 000
Additional information: The amount of Accounts receivables at 30 June Year 2017 was $78 000 (net). The inventory figure at 30 June Year 2017 was $130 000. The company provides its credit customers 30 days to pay. The average inventory turnover for the industry in which the company operates is 101 days. a. You are required to explain and calculate the following ratios for the years ended 30 June Year
2019 and 30 June Year 2018: – current ratio; – quick ratio; – accounts receivable turnover (times and in days); and – inventory turnover (times and in days).
b. Comment on the short-term solvency, including the efficiency of the business, given the ratio
results obtained in your answer in part a. PART B. Income and Revenue (4 marks) The core business of Green Apple Ltd involves the sale of anti-virus software. The following took place during the financial year ended 30 June. The company earned $25 000 000 from the sale of software; $3 000 000 from update downloads; and $50 000 in interest from investing on the short-term money market. The company also received a $2000 discount arising out of the early settlement of a liability; and issued shares in exchange for $500 000 cash during the year.
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HC1010 Accounting for Business
Discuss whether the foregoing five financial items would meet the definition of income to the company during the year? Give reasons for your answer. Which, if any, of the items would meet the definition of revenue to the company for the year? Give reasons for your answer. PART C. Comparing balance sheet (7 marks) ABC company and XYZ company conduct the same type of business. Both are recently formed entities. the balance sheets of the two companies as at 30 June 2020 are as follows:
ABC Company Balance sheet
As at 30 June 2020
$ $ $ $
Assets
Current assets
Cash at bank 2 400
Accounts receivable 4 800
Total current assets 7 200
Noncurrent Assets
Office equipment 6 000
land 18 000
building 30 000
Total non-current assets 54 000
Total assets 61 200
liabilities
Current liabilities
Accounts payable 21 600
Loan payable due 30 September 2020 31 200
Total current liabilities 52 800
Total liabilities 52 800
Net assets 8 400
Owner’s equity
P. Cable Capital 8 400
Total owners’ equity 8 400
XYZ Company Balance sheet
As at 30 June 2020
$ $ $ $
Assets
Current assets
Cash at bank 2 000
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HC1010 Accounting for Business
Accounts receivable 24 000
Total current assets 26 000
Noncurrent Assets
Office equipment 600
land 13 600
building 6 000
Total non-current assets 20 200
Total assets 46 200
liabilities
Current liabilities
Accounts payable 4 800
Loan payable due 30 September 2020 7 200
Total current liabilities 12 000
Total liabilities 12 000
Net assets 34 200
Owner’s equity
P. Cable Capital 34 200
Total owners’ equity 34 200
You are required to answer the following questions based on the information provided above:
a. assuming that you are a banker and that the owner of each business has applied for a short- term loan of $6000 (repayable in six months), which application would you select as being the more favourable? Explain.
b. assuming that you are a businessperson interested in buying one or both companies, and both owners have indicated their intentions to sell, for which business would you be willing to pay the higher price, assuming you will be taking over the existing liabilities of the company? explain.
c. if the existing owners agreed to be accountable for all existing liabilities, how would this change your decision in (b), if at all?
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HC1010 Accounting for Business
Marking criteria
Marking Criteria Weighting
Documented responses with explanations provided to each question. Use of appropriate and effective examples to accompany explanations.
85% 17 marks
Evidence of research and use of appropriate refencing in the assignment. 7.5% 1.5 marks
Written English Language competency. Coherent and logical explanations. Spelling, grammar, syntax, word choice, proof reading and editing. Use of correct format. Following submission guidelines.
7.5% 1.5 marks
TOTAL Weight 100% 20 marks
Assessment Feedback to the Student: (Note - Students will be provided with detailed feedback on Blackboard. Students may also make an appointment with their respective lecturer for more feedback if required. Students should always review the feedback comments provided and view the assessment as a learning opportunity.)
HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION
INSERT UNIT CODE & NAME AND ASSIGNMENT NAME
Marking Rubric
Section Excellent Very Good Good Satisfactory Unsatisfactory
Part A 6 marks
Correct calculation and effective explanation to all of the ratios. Exemplary demonstration of knowledge of the topic. Substantial relevant research using correct referencing conventions. Application and appropriate use of analytical skills. Examples used are appropriate. (6 marks)
Correct calculation to all of the ratios and effective explanation to them. Effective demonstration of content knowledge with sufficient research and examples. Referencing is noted and correctly performed. Competent explanations provided. (5 marks)
Correct calculation of all ratios and competent explanation to them. Sound demonstration of content knowledge. Research is evident and relevant to the question. Correct referencing is noted. More depth of analysis required. No. of words is acceptable. (4 marks)
Calculation of all ratios and minimum explanation to them. Reasonable demonstration of content knowledge. Some research has been done. (2 - 3 marks)
No calculation or incorrect calculation to all ratios and no explanation or incorrect explanation to all ratios. Little or no demonstration of content knowledge. No evidence of research. No grasp of the fundamentals. The no. of words is unsatisfactory. (0 - 2 mark)
Part B 4 marks
Exemplary demonstration of knowledge of the topic. Substantial relevant research using correct referencing conventions. Correct application and appropriate use of Knowledge. Examples used are appropriate. This section is within the word limit guidelines. (4 marks)
Effective demonstration of content knowledge with sufficient research and examples. Application and use of knowledge are noted. Referencing is noted and correctly performed. No. of words is acceptable. (3 - 3.5 marks)
Sound demonstration of content knowledge. Research is evident and relevant to the question. Correct referencing is noted. More depth of analysis required. (2.5 - 3 marks)
Reasonable demonstration of content knowledge. Some research has been done. Referenced ( 2 marks)
Little or no demonstration of content knowledge. No evidence of research. Little or no referencing. No grasp of the fundamentals. Over / under the word limit. (0 - 1 mark)
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HC1010 Accounting for Business
Part C 7 marks
Exemplary demonstration of knowledge of the topic. Substantial relevant research using correct referencing conventions. Correct application and appropriate use of knowledge. Examples used are appropriate. This section is within the word limit guidelines. (7 marks)
Effective demonstration of content knowledge with sufficient research and examples. Application and use of knowledge are noted. Referencing is noted and correctly performed. No. of words is acceptable. (5 - 6 marks)
Sound demonstration of content knowledge. Research is evident and relevant to the question. Correct referencing is noted. More depth of analysis required. (3.5 - 4.5 marks)
Reasonable demonstration of content knowledge. Some research has been done. Referenced. (2 - 3.5 marks)
Little or no demonstration of content knowledge. No evidence of research. No application and no use of knowledge. Little or no referencing. No grasp of the fundamentals. Over / under the word limit. (0 – 1 mark)
Overall Of Assignment
Research,
Referencing, Format,
Structure, Sentence
organisation
3 marks
Well written. Only very minor errors in grammar, spelling, punctuation and syntax. Substantial relevant research using correct referencing conventions. Strong focus on the topic. Logical and sustained connection throughout assignment. (3 marks)
Effectively composed with minor errors. Referencing is noted and correctly performed. No. of words is acceptable. Appropriate and relevant focus on topic and content. Logical and sustained connection throughout assignment. (2.5 marks)
Competently written, but with some errors. Research is evident and relevant to the question. Correct referencing is noted. Satisfactory focus on topic Ideas are organised but could be improved (2 mark)
Some errors, but the written composition is satisfactory and understandable. Some research has been done. referenced. Mostly relevant materials included. Ideas are organised but connections maybe missing or incorrectly used. (1- 1.5 marks)
Poorly written or insufficient. No referencing or incorrect referencing. Significantly either over / under the word limit. Poor focus on topic. Irrelevant materials are included. Ideas are disorganised. (0 - 0.5 mark)
