GSM5301 Accounting for Decision Making
3 July 2013
8 pm - 10 pm
Instruction: Answer ALL questions. Show all workings and answers in answer book provided.
QUESTION 1 (10 marks)
If you are looking to invest in a publicly listed company, what are the types of financial and non-financial information inside the annual report of that company that are important for you? Why are these two types of information important for you?
QUESTION 2 (25 marks)
Maisarah& Associates Consulting (MAC)Sdn. Bhd. is an engineering consulting firm incorporated on 1 July 2005. As at 1 July 2012, the Statement of Financial Position for MAC Sdn Bhd. is as follows:
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You also need to indicate which account will be affected under each category of Assets, Liabilities or Owners Equity and by how much RM.
QUESTION 3 (15 marks)
Explain, using the relevant accounting principles (concepts), on the following accounting practices:
a) The value of inventory is disclosed at its historical cost. The net realisable value is lower than the cost of inventory.
b) Advance payment for sales is recorded as sales revenue.
c) Business owner’s property is shown as assets in the balance sheet of business.
d) The accountant changes the depreciation method again this year.
e) The financial statement of a publicly listed company in Bursa Malaysia shows amounts rounded to the nearest million RM.
QUESTION 4 (50 marks)
You work as an Account Manager at B-Daman, a private limited company in Serdang sellingtablet computers. On 1 January 2012, B-Daman has 10 computers valued at RM550 each. During the year ended 31 December 2012, the following transactions took place:
31-01-2012 Bought 35 computers at RM600 each
01-03-2012 Bought 28 computers at RM710 each
15-03-2012 Sold 21 computers at RM750 each
05-05-2012 Bought 15 computers at RM730 each
30-09-2012 Sold 18 computers at RM775 each
10-10-2012 Sold 10 computers at RM735 each
B-Daman has a...