Validity of the accounting implications, Financial Management

Assignment Help:

Question:

In each case below and having regard to your knowledge of Accounting Concepts, comment on and assess the validity of the accounting implications/practices to be adopted by these businesses:-

(i) Mr. Goldman is a very skilled and artistic Jeweller who has won various exhibition prizes. He considers himself to be the most important asset that his workshop could possess. Consequently, he has instructed his accountant to include his "knowledge and skill" as an Asset in the Balance Sheet of the business.

(ii) The Debtors figure in the books of "Electric Appliances Ltd." includes an amount of Rs 5,000 owed by one Mr. Jackson since some three years now. Various appeals have been made to him to settle the debt but to no avail. A final reminder was sent to him by post but the letter was returned to sender with the mention "Gone Away".

(iii) While preparing the Final Accounts of "Maxi Stone Crusher Ltd." for the year ended 30th June 2005, you read in the Newspapers that the License of this Stone Crushing Company will not be renewed after its present expiry date i.e. 30th September 2005 because the place where it is located has been declared a "Residential Zone".

B. Describe what do you understand by:

(i) A Revenue Centre; and
(ii) A Cost Centre;
(iii) An Investment Centre. and give an example in each case.


Related Discussions:- Validity of the accounting implications

How do risk-averse investors compensate, How do risk-averse investors compe...

How do risk-averse investors compensate for risk when they take on investment projects? For the reason of risk aversion, people demand elevated rates of return for taking on hi

Commercial paper, What is Commercial Paper? Please provide me report on Est...

What is Commercial Paper? Please provide me report on Estimation of Commercial Paper. It is about 2000 words count report on topic Commercial Paper.

risk/return profile of the convertible security, Let us consider thr...

Let us consider three scenarios of changes in stock prices and look into the risk return profile of the convertible security. Let us assume that the stock prices

Strategies to achieve financial targets, The XYZ company supplies products ...

The XYZ company supplies products to a number of original equipment manufacturers (OEM's). It employs 5,000 mostly unionized workers and generates about $2.2 billion in revenue ann

Describe the value maximisation criterion, Describe the value maximisation ...

Describe the value maximisation criterion In applying the value maximisation criterion, term value is used in terms of worth to the owners, which is, ordinary shareholders. Cap

Rating symbols, Rating Symbol Capacity ...

Rating Symbol Capacity for Timely Repayment Rating Symbol Capacity for Timely Repay

Calculate the optimum amount of funds to transfer, Q. Calculate the optimum...

Q. Calculate the optimum amount of funds to transfer? The Baumol model is derived from the EOQ model and is able to be applied in situations where there is a constant demand fo

Qualitative analysis, Does your company have a cutting-edge product idea th...

Does your company have a cutting-edge product idea that will blaze new trails in its industry? Is it properly retiring out-of-date products and keeping current with new consumer de

Sollution the problem, VK Ltd a multi-product Company, furnishes you the fo...

VK Ltd a multi-product Company, furnishes you the following data relating to theyear 2000.First Half of the year Second Half of the yearSales Rs. 45,000 Rs. 50,000 Total Cost Rs. 4

Determinants of the repo rate, Repo rates vary from transaction to tr...

Repo rates vary from transaction to transaction. They depend upon a variety of factors like: Collateral's quality Repo term

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd