A business produces three products, X, Y and Z. Each of these products require
the same material, which is a scarce resource. The following data relates to the three
|Material ( $10 per kg)||-30||-40||-20|
|Labor ($5 per hour)||-50||-30||-10|
In what order should the products be manufactured in order to ensure profit is
XYZ Co is a successful business, supply a variety services, such as web design,
advertising and commercial consulting services. The Board of Directors are aware of
each service required core and unique competence and different corporate strategies.
Jack, one of directors and a major shareholder, is considering to use a business
structure to allow every part of business can complete all functions from R&D and sale
separately, high degree autonomy, in order to expand market share effectively in the
Which of business organization structure is the most appropriate from Jack’s point of view?
Alice made a profit for the year of $345,687 and has closing net assets of $435,195. During the financial year, capital of $60,000 was introduced which consisted of $40,000 in cash and $20,000 in non-current assets. Drawing of $6,000 were taken out of the business each month. What was the opening balance of net assets?
An inexperienced bookkeeper has drawn up the following payables ledger control account, which contains errors:
What should the closing balance be after correcting the errors made in preparing the account?
A government follows an expansionary monetary policy. How would this typically affect businesses?
One of your audit clients is Dawson Co (Dawson). The audit fieldwork for Dawson is complete. Once again the audit senior has raised an outstanding issue.
Dawson’s computerised wages program is backed up daily, however for a period of two months the wages records and the back-ups have been corrupted, and therefore cannot be accessed.
Wages and salaries for these two months are $1.1m. Profit before tax is $10m.
Which of the following correctly summarises the effect of the issue relating to wages?
Material Financial statement impact
A No Liabilities to tax authorities may be understated
B No Profit may be overstated
C Yes Wages may be materially misstated
D Yes Proper accounting records have not been kept
Based on the above information which of the following options correctly summaries the impact of the wages and salaries issue on the auditor’s report?
Audit opinion Disclosure in the auditor’s report
A Qualified Basis for qualified opinion
B Disclaimer Basis for disclaimer of opinion
C Qualified Key audit matters section
D Qualified Emphasis of matter