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Case - Miracles of a Middle Management Financial Accountant - In the annual general meeting of GAG Ltd, the directors were perturbed by the way the finance department dealt with intangible assets; provisions, contingent liabilities, contingent assets and financial assets. In the contemporary world of business, argued the directors of GAG Ltd, it is imperative for a middle management accountant to be skilled in all applied accounting practices and even interpret such practices for better understandability by users of financial information that he/she provides. The directors were particularly not happy the way intangible assets, provisions, contingent liabilities, contingent assets and liabilities were or were not recognised in the financial statement. In Uganda the securities market is shallow. It is in such markets that financial assets including those of GAG Ltd are traded to raise money for listed companies including government itself. GAG Ltd has purchased intangible assets which form part of the reporting problems as they can easily be kept off balance sheet or misreported.
1. Advise management of GAG Ltd on the importance of cash control.
2. Prepare control accounts for the manager's personal business- Gag Ent.
3. Explain plausible cash controls that can be undertaken in Gag Ent.
4. Prepare GAG Ltd.'s Profit or loss statement for the year to 30 November 2021.
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