ACC00724 - Accounting For Managers - Accounting Assignment

Internal Code : TV698

Accounting Assignment

  Questions: a) A local restaurant is noted for its fine food, as evidenced by the large number of customers. A customer was heard to remark that the secret of the restaurant’s success was its fine chef. Would you regard the chef as an asset of the business? If so, would you include the chef on the balance sheet of the business and at what value? b) Indicate the effect of each of the following transactions on any or all of the three financial statements of a business: 1. Statement of financial position 2. Statement of financial performance 3. Statement of cash flows Apart from indicating the financial statements (s) involved, use appropriate phrases such as ‘increase total asset’, ‘decrease equity’, ‘increase income’, ‘decrease cash flow’ to describe the transaction concerned. 1. Purchase equipment for cash. 2. Provide services to a client, with payment to be received within 40 days. 3. Pay a liability. 4. Invest additional cash into the business by the owner. 5. Collect an account receivable in cash.