MGT100: Introduction to Accounting - Trial Balance and Balance Sheet - Management Assignment Help

Assignment Task:

Part A

1) Users of accounting information

The textbook, Smart, Awan & Baxter, p. 21 lists the following seven stakeholders who have an interest in accounting information:
• owners and investors
• managers
• creditors and lenders
• employees
• the government
• unions
• the general public.

a) Explain the meaning of ‘stakeholder’.

b) For each of the first five listed stakeholders above (i.e. excluding unions and the general public), state:

i) a specific decision that the stakeholder would make, that would require accounting information before they made it

Note: do not use the same type of decision twice.

ii) the specific accounting information they would require for that decision

iii) the financial statement from which they would obtain that required information.

c) Smart, Awan & Baxter (text, chapter 2) outline two types of investor – current and prospective. Briefly describe two general types of information they are interested in, and what they use the information for.

d) The text (in chapter 2) further outlines three general types of information needs for managers. Briefly describe these three, and how managers would use this information.

e) Creditors are interested in solvency and security. Briefly define and explain these in relation to creditors’ needs.

2) Distinguish between ‘general purpose’ and ‘special purpose’ financial statements and outline the significance of this distinction.

3) It is vital that financial statements can be relied on. What steps would you recommend an organisation takes to ensure that the information in its financial statements achieves this?

4) Give an example of an implication for each of the following assumptions/principles.
i) Going concern
ii) Accrual basis
iii) Period reporting
iv) Understandability
v) Relevance
vi) Reliability
vii) Comparability

5) Define the (accounting) entity concept, and explain two implications that follow from adopting it.

6) Define ‘monetary convention’, and explain the main advantage of (and rationale for) applying the monetary convention to accounting records.

7) Explain 2 of the following internal control measures, with an example and implication for each:

•  establishment of responsibility
•  segregation of duties
•  documentation procedures
•  physical, mechanical and electronic controls
•  independent internal verification
•  rotation of duties.

Part B

Prepare a Balance Sheet

Part C

1) Distinguish between cash basis accounting and accrual basis accounting, by listing the types of transactions that each record and/or does not record.

2) Your friend Randolph has been reading about the collapse of Enron in the USA, and has asked about the meaning of the terms ‘capital expenditure’ and ‘revenue expenditure’. Explain how capital expenditure and revenue expenditure are different, and why it is important to differentiate between them, particularly in regard to their effect on financial statements.

3) Explain why accrual accounting is the preferred accounting method, including in your explanation the terms ‘accounting period’ and ‘matching principle’.

This MGT100: Management Assignment has been solved by our Management Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.