What is the difference between the straight-line method of depreciation and the written down value method Which method is more appropriate for reporting earnings

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FINANCIAL ACCOUNTANCY


Case – 1

Paris Hilton marries Swami Nathan

Ms Paris Hilton married Swami Nathan and got her self rename Ms Paris Swami Nathan Hilton. She has estimated the yearly coast in producing her album to be $ 150,000 sales are estimated to be $ 200,000. On the close of the year, she got a report stating cost as $ 150,000 and sales as $ 225,000 She was happy stating the sales has exceeded the target and had led to the awarding of bonus for the staff, For the second year she creates two new albums. The Second year report states the coast to be $300,000 and sales as $450,000. Like always she is happy to award incentive to the staff and feels that the performance again has been antaned consecutively.

Questions:

1)  Suggest if any measures to Ms Paris for any other further improvements on her business analysis along with reason.

2)  What Other Factors, do you think are essential while doing business analysis and awarding incentives?

Part 2

1)  ‘Accounting is closely connected with management control’: Elaborate this statement and discuss the role of accounting in providing feedbacks for management control.

2)  What is the main purpose of a balance sheet ?

3)  Discuss the various ways of presenting a profit and loss account?

4)   Discuss the utility of rations from various stockholder perspective. Also identify the three key financial rations from each stockholder’s perspective?
5)  What are the financial numbers and ratios to be used and computed to find out ‘Gearing’ of a company? What does ‘Gearing’ of a company convey to us? Is positive gearing a good figure? Can we say that higher the gearing of a company the better ii is for all stock holder?

6)  Can a leasehold Property be depreciated? If yes, Which is the appropriate method?

7)   What is the difference between the straight-line method of depreciation and the written down value method? Which method is more appropriate for reporting earnings?

8)  What is block depreciation? Where would block depreciation be most appropriate?

9)  What is block depreciation? Where would block depreciation be most appropriate



Need Answer Sheet of this Question paper, contact

aravind.banakar@gmail.com

www.mbacasestudyanswers.com


ARAVIND – 09901366442 – 09902787224

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