Accounting Question

Question 4(a) – 6 marks

1. What is the time period covered by ALS Ltd’s Profit and loss statement? (1 mark)

1. Which other of ALS Ltd’s financial statements cover this same period? (1 mark)

1. Why doesn’t ALS Ltd’s balance sheet cover this time period? (1 mark)

1. What was the total amount of profit (after tax) earned by ALS Ltd and its subsidiaries in 2013? (1 mark)

1. How much of this profit are the shareholders of ALS Ltd entitled to? (1 mark)

1. Why are the shareholders of ALS Ltd not entitled to all profits? (1 mark)

Question 6(b) – 3 marks

1. Refer to Note 17 ‘Other Assets’: What do ‘Prepayments’ represent? (1 mark)

1. Explain why these items are recognised as assets. (1 mark)

1. What are the three types of intangible assets recognised by ALS Ltd in 2012-13? (1 mark)

Question 7(a) – 3 marks

1. What was the value of cash receipts from customers in 2013? (1 mark)

1. Why does this amount differ from the total amount of revenue from sale of goods plus revenue from rendering of services? (1 mark)

1. Observe that ALS Ltd has reported negative net cash flows from investing activities in 2013. Explain whether, in your opinion, this negative net cash flow represents a potential problem for ALS Ltd. (1 mark)

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